While the U.S. housing market continues to struggle with mortgage rates nearing the 7% mark, and the average U.S. home valued at $355,328 (up 2.7% over the past year), Fannie Mae and Freddie Mac both closed out 2024 on a high note, both reporting quarterly and annual gains.
Fannie Mae reported $17 billion in annual net income, and $4.1 billion Q4 2024 net income, with its net worth reaching $94.7 billion as of December 31, 2024.
“FannieMae concluded the year with a strong quarter, generating net income of $4.1 billion, and $17.0 billion for the year,” said Priscilla Almodovar, President and CEO of Fannie Mae. “In 2024, we grew our net worth to nearly $95 billion, continued to build our regulatory capital, and carried out our mission. Our strong results were driven by guaranty fee income, consistent with the transformation of our business model that began well over a decade ago. For the year, we provided $381 billion in liquidity to the U.S. housing market, helping 1.4 million households buy, refinance, or rent a home.”
Fannie Mae reported $381 billion in liquidity provided in 2024, which enabled the financing of approximately 1.4 million home purchases, refinancings, and rental units. Fannie acquired approximately 778,000 single-family purchase loans, of which approximately half were for first-time homebuyers, and approximately 204,000 single-family refinance loans during 2024.
Fannie Mae reported the financing of approximately 420,000 units of multifamily rental housing in 2024; a significant majority were affordable to households earning at or below 120% of area median income (AMI), providing support for both workforce and affordable housing.
For the close of 2024, Freddie Mac reported a net income of $3.2 billion for Q4, an increase of 11% year-over-year, primarily driven by higher net revenues, partially offset by a provision for credit losses in the current period compared to a benefit for credit losses in the prior period. Net revenues were $6.3 billion for Q4 of 2024, up 18% year-over-year, primarily driven by higher net interest income and higher non-interest income. Net interest income for Q4 of 2024 was $5.1 billion, up 6% year-over-year, primarily driven by continued mortgage portfolio growth and lower funding costs due to increasing net worth. Non-interest income for Q4 of 2024 was $1.3 billion, compared to $0.6 billion for Q4 of 2023, primarily driven by an increase in net investment gains.
Provision for credit losses reported by Freddie Mac was $0.1 billion for Q4 of 2024, compared to a benefit for credit losses of $0.5 billion for Q4 of 2023.
“Today, Freddie Mac reported strong 2024 earnings of $11.9 billion and a net worth of $60 billion,” said Diana W. Reid, CEO of Freddie Mac. “We delivered $411 billion of liquidity into the U.S. housing finance system, helping 1.6 million families buy, refinance, or rent a home in 2024. We also prepared tens of thousands of borrowers and renters for future success through financial education, credit building tools, and programs designed to encourage sustainable, affordable homeownership and rental opportunities. I want to thank Freddie Mac’s committed staff and lenders of all sizes, across the country, who helped make this outcome possible.”
