The Fannie report contrasts Freddie Mac’s monthly numbers (see related item below), which show a month-to-month decline in issuance.
Freddie Mac reported a slight decline in its purchases of refinanced loans in July. Fannie does not break out purchases of refinanced loans in its monthly reports but the timing of its numbers relative to the MBA’s refi application numbers suggests the recent surge in the latter has not really boosted Fannie’s MBS issuance yet.
Fannie’s monthly report shows MBS issuance slowly rising from May. But the recent surge in refinancing applications didn't really start until the later part of June.
By the end of July, refinancing applications hit a 13-month high, according to the Mortgage Bankers Association. Those refinancing applications that are approved will probably show up in the MBS issuance numbers that the August and September GSE reports.
Fannie also reported that the serious delinquency rate on its guaranteed single-family mortgages fell below 5% for the first time since October 2009.
The GSE said 4.99% of its loans are 90 days or more past due in June, down 16 basis points from the prior month. It is the fourth monthly consecutive decline in the delinquency rate. (Fannie has a one-month delay in reporting delinquency rates.)
