Freddie Mac shares rose 13.5% after earnings, as investors responded to higher year-over-year net income and revenue, portfolio growth, and lower expenses. The quarter also included a much larger credit-loss provision, driven by a single-family reserve build, while elevated mortgage rates continued to weigh on housing-market activity.
- Net income increased 17% year-over-year to $3.2 billion; net revenues rose 19% to $6.8 billion.
- Net interest income increased 8% to $5.7 billion, while net interest yield rose 3 basis points to 67 basis points.
- The $800 million credit-loss provision was up from $175 million a year earlier, primarily reflecting a single-family reserve build tied to higher projected mortgage rates and new acquisitions.
- Non-interest expense fell 6% year-over-year to nearly $2 billion; the total mortgage portfolio grew 2% to nearly $3.7 trillion.
- Mortgage rates ended the quarter at 7.03%. The single-family serious delinquency rate was 61 basis points, up 4 basis points year-over-year.
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