Freddie Mac, the leading provider of financing for the U.S. housing market, has reported its financial and business results for the first quarter of 2024. The company’s net income for the quarter was $2.8 billion, a 39% increase year-over-year, driven by higher net investment gains and increased net interest income due to rising interest rates.
In the Single-Family segment, net income grew by 16% to $1.9 billion, with net revenues up 6% and the mortgage portfolio expanding by 2%. The company’s efforts to support affordable housing were evident, with 52% of new business activity coming from first-time homebuyers and 61% of the Single-Family portfolio having some form of credit enhancement.
The Multifamily segment also performed well, with net income reaching $821 million, a significant increase from the prior year quarter. This was driven by higher non-interest income, including gains from interest-rate risk management activities and favorable fair value changes. The Multifamily business provided financing for 85,000 rental units, with 61% of those affordable to low-income families.
Freddie Mac’s focus on expanding affordability and access to homeownership and rental opportunities remains a key priority. The company has introduced new initiatives, such as the Home Possible Very Low-Income Purchase Credit, to help very low-income families with closing costs and down payments. Additionally, updates to the Mission Index are making it easier for investors to identify mortgage-backed securities that align with their social investment goals.
As the housing market faces ongoing affordability challenges, Freddie Mac continues to enhance its risk management practices, including strengthening underwriting due diligence and property inspection requirements in the Multifamily segment. These actions demonstrate the company’s commitment to supporting the housing finance system in a safe and sound manner.
Overall, Freddie Mac’s strong financial performance and its efforts to increase access to affordable housing and homeownership opportunities highlight its role in shaping the future of the U.S. housing market.
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