April saw a sharp drop in Freddie Mac's retained portfolio - for the sixth consecutive month - and a decrease in the GSE's guarantee business relative to March, Freddie Mac reported in its volume summary for last month. The interest rate risk measures remained decent despite the strong rise in interest rates, analysts noted.
Freddie's retained portfolio dropped at a 7.8% annualized rate to $631.5 billion due to higher liquidations and sales. The annualized liquidation rate increased to 42% in April from 34% in March. The increase was attributed to a surge in refinancings over the month. These were somewhat offset by a rise in new purchases. New commitments remained steady at $20.3 billion. The company's total mortgage portfolio contracted at an annualized rate of 2% to $1.43 trillion.