Both government-sponsored enterprises (GSEs), Fannie Mae and Freddie Mac, have reported their second quarter financials, as both continue to provide liquidity to the housing market, assisting the nation with the purchase, refinance, and rental of homes.
Fannie Mae reported $4.5 billion in net income for the second quarter of 2024, with its net worth reaching $86.5 billion as of June 30, 2024. In Q1, Fannie Mae reported $4.3 billion in net income, with net worth reaching $82.0 billion.
Freddie Mac reported its Q2 net income at $2.8 billion, a decrease of 6% year-over-year, primarily driven by a credit reserve build in the current period compared to a credit reserve release in the prior year period, partially offset by higher net revenues. In Q1, Freddie Mac reported a net income of $2.8 billion, an increase of 39% year-over-year, primarily driven by higher net revenues.
“Fannie Mae had another strong quarter, generating $4.5 billion in net income,” said Priscilla Almodovar, President & CEO of Fannie Mae. “Our net worth reached $86.5 billion, further strengthening our financial stability, and our capital position continued to improve. This quarter, we provided $95 billion in liquidity to the housing market, helping 330,000 households buy, refinance, or rent a home. Half of our single-family purchase acquisitions this quarter were loans made to first-time homebuyers, demonstrating that today’s housing affordability pressures have not changed the desire to own a home. That’s why managing risk and partnering with the industry to help consumers on their housing journeys remain top priorities.”
Michael T. Hutchins, President and Interim CEO of Freddie Mac said, “Freddie Mac continued to deliver steady results in a housing market characterized by relatively high mortgage rates and muted home sales. The company remains focused on helping families purchase or rent a place to call ‘home.’”
Fannie Mae Q2 Highlights
In the second quarter of 2024, Fannie Mae reported:
- Net income increased $164 million in Q2 of 2024, compared to Q1 of 2024, primarily driven by increases in net interest income and benefit for credit losses.
- The GSE provided $95 billion in liquidity in the second quarter of 2024, which enabled the financing of approximately 330,000 home purchases, refinancings, and rental units.
- Acquired approximately 213,000 single-family purchase loans, of which approximately half were for first-time homebuyers, and approximately 45,000 single-family refinance loans during the second quarter of 2024.
- Financed approximately 72,000 units of multifamily rental housing in the second quarter of 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.
- Home prices grew 3% on a national basis in Q2 of 2024, according to the Fannie Mae Home Price Index.
- The U.S. weekly average 30-year fixed-rate mortgage (FRM) increased from 6.79% as of the end of Q1 2024, to 6.86% as of the end of Q2 2024.
Freddie Mac Q2 Highlights
In the second quarter of 2024, Freddie Mac reported:
- Net revenues of $6 billion, an increase of 12% year-over-year, driven by higher net interest income and higher non-interest income.
- Provision for credit losses of $0.4 billion, primarily driven by a credit reserve build in single-family attributable to new acquisitions.
- New business activity of $85 billion, up from $83 billion in the second quarter of 2023.
- Mortgage portfolio of $3.1 trillion, up 2% year-over-year.
- Serious delinquency rate of 0.50%, down from 0.56% at June 30, 2023.
- Completed approximately 18,000 loan workouts.
- 62% of mortgage portfolio covered by credit enhancements.
- New business activity of $11 billion, down from $13 billion in the second quarter of 2023.
- Mortgage portfolio of $447 billion, up 5% year-over-year.
- Delinquency rate of 0.38%, up from 0.21% at June 30, 2023.
- 95% of mortgage portfolio covered by credit enhancements.
Click here for more information on Fannie Mae’s Q2 financials and click here for info on Freddie Mac’s Q2 financials.
