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March 2024 » thefivestar.com 71 March 2024 J O U R N A L supporting America's housing system, we remain committed to effectively manag- ing risks and being a reliable source of mortgage credit for America's homeown- ers and renters." The U.S. weekly average 30-year fixed-rate mortgage rate (FRM) increased from 6.42% at the end of 2022, to an av- erage of 6.61% at the end of 2023. Fannie Mae reported that home prices grew 7.1% on a national basis in 2023. Freddie Mac reported a net income of $2.9 billion for Q4 2023, and $10.5 billion for the full year of 2023, making home- ownership possible for 1.4 million house- holds in 2023, according to their earnings report. The GSE financed 955,000 mortgages, with 56% of eligible loans being affordable to low- to moderate-in- come families, enabling 375,000 first-time homebuyers to purchase a home. Freddie Mac also financed 447,000 rental units, with 92% of eligible units being affordable to low- to moderate-in- come families. The net income of $2.9 billion reported by Freddie Mac was an increase of 65% year over year, primarily driven by higher net revenues and a credit reserve release in Single-Family in Q4 of 2023, compared to a credit reserve build in Single-Family in Q4 of 2022. "In 2023, Freddie Mac delivered on its mission, achieved solid financial results, and meaningfully increased its net worth," said Michael J. DeVito, CEO of Freddie Mac. "The company helped more than 1.4 million families buy, refinance, or rent a home, and worked with lenders to reach more borrowers in underserved areas. Freddie Mac also set a new milestone, financing a higher proportion of loans for first-time home- buyers than in any year since we started tracking that statistic three decades ago." Additional earnings highlights reported by Fannie Mae throughout calendar year 2023 included: » Net income increased $4.5 billion in 2023 compared to 2022, primarily driv- en by a $7.9 billion shift to a benefit for credit losses in 2023 from provision for credit losses in 2022. » The GSE reported $369 billion in liquidity provided in 2023, which en- abled the financing of approximately 1.5 million home purchases, refinanc- ings, and rental units. » Fannie Mae acquired approximately 805,000 single-family purchase loans, of which more than 45% were for first- time homebuyers, and approximately 179,000 single-family refinance loans during 2023. » Financed approximately 482,000 units of multifamily rental housing in 2023; a significant majority were affordable to households earning at or below 120% of the area median income (AMI), providing support for both workforce and affordable housing. Additional earnings highlights reported by Freddie Mac throughout calendar year 2023 included: » Net revenues of $5.4 billion, an increase of 11% year over year, driven by higher net interest income and non-interest income. » Benefit for credit losses of $0.5 billion, primarily driven by a credit reserve re- lease in Single-Family due to improve- ments in house prices nationwide. » New business activity of $73 billion, down 3% year over year, as both home purchase and refinance activity were affected by higher mortgage interest rates. Full-year 2023 activity of $300 billion, down 45% year over year. » Mortgage portfolio of $3 trillion, up 2% year over year, as portfolio growth moderated in 2023 due to the slow- down in new business activity. » Serious delinquency rate of 0.55%, down from 0.66% as of December 31, 2022. » Completed approximately 19,000 loan workouts. » Freddie Mac reported that 61% of its mortgage portfolio is covered by credit enhancements. » New business activity of $16 billion, down 45% year over year, as higher mortgage interest rates have reduced demand for multifamily financing. Full-year 2023 activity of $48 billion, down 34% year over year. » Mortgage portfolio of $441 billion, up 3% year over year, as portfolio growth moderated in 2023 due to the slow- down in new business activity. » Delinquency rate of 0.28%, up from 0.12% on December 31, 2022. » Freddie Mac reported that 94% of its mortgage portfolio was covered by credit enhancements. GINNIE MAE'S MBS PORTFOLIO HITS $2.53 TRILLION G innie Mae has announced that its mortgage-backed securities (MBS) portfolio outstanding grew to $2.53 trillion in January 2024, includ- ing $28.1 billion of total MBS issuance, leading to $10.8 billion of net growth. January's new MBS issuance sup- ports the financing for more than 91,000 households, including more than 46,000 first-time homebuyers. Approximately 77.6% of the January MBS issuance re- flects new mortgages that support home purchases because refinance activity re- mained low due to higher interest rates. At the close of January, Freddie Mac reported the 30-year, fixed-rate mortgage (FRM) at 6.63%. A year ago, at this time, the 30-year FRM averaged 6.09%. The Mortgage Bankers Association (MBA) reported the refinance share of mortgage activity at 34.2% for the week ending January 26, 2024. Ginnie Mae's January issuance includes $27.4 billion of Ginnie Mae II MBS and more than $674 million of Ginnie Mae I MBS, including nearly $558 million in loans for multifamily housing. For the 2024 calendar year to date, Ginnie Mae supported the pooling and securitization of more than 46,000 first- time homebuyer loans. Ginnie Mae's MBS portfolio out- standing grew to $2.52 trillion in Decem- ber, including $28.7 billion of total MBS issuance, leading to $13 billion of net growth. December's new MBS issuance supports the financing of nearly 95,000 households, including more than 47,000 first-time homebuyers. Approximately 76.3% of the December MBS issuance reflected new mortgages that support home purchases because refinance activ- ity remained low due to higher interest