Mortgage Refinancing Activity Declines
Tuesday, September 1st, 2009Freddie Mac recently reported a 30% decline in July MBS issuance along with a 33% drop in the buying of mortgage loans that have been refinanced. Freddie Mac said it purchased $34.1 billion in refinancing loans in July, but Fannie has stopped reporting home refinancing volumes.
According to the company’s new monthly activity report, Fannie Mae’s issuance of mortgage-backed securities fell 39% in July from the prior month. The government mortgage giant issued $79.7 billion in MBS during July, compared to $130 billion in June. At the same time, its commitments to purchase loans rose 42% in July to $103.6 billion, a sign that residential production could be picking up.
However, their regulator reported that Fannie purchased 264,317 mortgage refinance loans in July and Freddie purchased 158,182 refinancing transactions. Based on Freddie’s average loan size, Fannie purchased approximately $57 billion in mortgage refinancing. Fannie also said 3.9% of its single-family mortgages in June were 90 days or more past due, up from 1.36% a year ago
