Freddie Mac reported this week that its total mortgage portfolio increased at an annualized rate of 12.9 percent in August, increasing from 6.3 percent the previous month. The portfolio balance at the end of the period was $2.275 trillion compared to $2.251 trillion at the end of July and $2.145 trillion a year earlier.  

Purchases and Issuances totaled $65.36 billion and Sales were ($3.641) billion. The July numbers were $46.087 billion and ($3.839) billion respectively. 

Single-family refinance loan purchase and guarantee volume was $21.7 billion in August, up from $13.8 billion in July and representing a 42 percent share of total single-family mortgage portfolio purchases and issuances compared to 38 percent the previous month.   

Purchases in Freddie Mac's Mortgage Related Investments Portfolio totaled $39.920 billion for the month compared to $41.421 billion in July. Liquidations were ($3.258) billion and ($2.581) billion for August and July respectively and Sales for the two periods were ($33.901) and ($38.956) billion. The ending balance in the portfolio was $218.630 billion, down about $200 million from July.  The annualized growth rate was a decline of 1.3 percent compared to a decline of 0.6 percent in July and growth of 47.5 percent a year earlier.

The ending balance of the Mortgage Related Investments Portfolio was composed of $123.002 billion in Mortgage Related Securities, Mortgage Loans valued at $88.184 billion, Non-Agency, non-Freddie Mac Mortgage-Related Securities at $1.978 billion; and Agency non-Freddie Mac Mortgage related securities of $5.706 billion. Mortgage related securities and other guarantee commitments increased at an annualized rate of 13.2 percent compared to 7.1 percent the previous month.   

Freddie Mac's single-family delinquency rate was unchanged at 0.61 percent.  In August 2018 the rate was 0.73 percent.  The rate for credit-enhanced Primary Mortgage Insurance loans was down 1 basis point to 0.75 percent and the non-credit portion fell 1 basis points to 0.72 percent.  The multi-family delinquency rate was 0.04 percent rising after five straight months at 0.03 percent. The rate a year earlier was 0.01 percent.  

Freddie Mac said the measure of its exposure to changes in portfolio value averaged $61 million in August, up from $54 million in July.  The duration gap was an average of 0 month compared to 1 month in July. The elevated interest-rate exposure measures were due to the inclusion of Single-Family upfront fees risk into the company's asset and liability management strategy.