Friday, October 23, 2009

Freddie Mac Loan Defaults

In September, Freddie Mac's loan defaults set an annualized record, after hitting a stunning 7.3%. Even worse, the rate of decline among single-family loans increased substantially month over month, from 3.13% in August to 3.33% in September, (and 1.22% in the prior year, just after the GSE's ended up being nationalized: a 270% increase YoY). The rate of defaults has now climbed for 28 straight months.

Freddie's holdings actually expanded by $4.8 billion to $784.2 billion in September, after four months of declines.