|Business Volume Plunges at Fannie
July business purchases $55.6 billion
August 16, 2004
By MortgageDaily.com staff
|While the duration gap fell for one of the nation’s largest secondary lenders, its monthly business purchases fell even further.
In its monthly summary, Fannie Mae announced July business volume totaled $55.6 billion — a downturn from the previous month’s $77.5 billion. Last year at this time, the figure was almost triple the latest amount at $144.1 billion.
July’s purchases consisted of nearly $34.0 billion in mortgage-backed securities (MBS) issues acquired by others and portfolio purchases of $21.6 billion, according to the report.
Fannie said its $2.3 trillion book of business was made up of an $0.9 trillion gross mortgage portfolio and $1.4 trillion in outstanding MBS.
Both the single-family and multifamily delinquency rates for June, which are reported on a one-month lag, were unchanged from May at 0.57% and 0.14%, respectively, according to the monthly summary.
The effective duration gap was 0 months in July, Fannie reported, versus positive 2 months in June. The duration gap measures the balance of Fannie’s cash flows on assets and liabilities, and at 0, indicates that incoming cash flows matched the pace of outgoing payments.
So, you’re interested in refinancing your mortgage. Maybe you want some extra capital to do that home project you’ve always dreamed of, interest rates are nearing record lows, or you want to start consolidating debt. Regardless of the motivation behind the refinance,...