It looks like elevated refinance activity has reached the Federal Home Loan Mortgage Corp., where secondary mortgage activity accelerated to the highest level in six months. The level of late payments also improved.
An operational summary from McLean, Va.-based Freddie Mac indicated that purchases and issuances were $27.7 billion in August.
That was the highest volume since February’s $38.9 billion.
Although the secondary lender’s monthly activity was higher, its total mortgage portfolio wasn’t. August’s ending balance was $2.1169 trillion, shrinking from $2.1207 trillion at the end of July and $2.2051 trillion at the same point last year.
Last month’s balance included an investment portfolio of $0.6806 trillion, and $1.4363 trillion in outstanding participation certificates.
After a slight uptick in July, 90-day residential delinquency fell to 3.49 percent in August from 3.51 percent the previous month. Servicers have made a significant improvement in Freddie’s delinquency since August 2010 when the rate was 3.83 percent.
Multifamily delinquency of at least 60 days was unchanged from July at 0.35 percent. It was worse, however, than 0.27 percent a year previous.