Fannie Mae issued $34.5 billion of MBS in April, a 36% plunge from the prior month, according to figures released by the GSE Friday morning. In April its MBS issuance rose 4.2%.
The weaker showing is another sign that residential loan production in the primary market was slowing significantly early this spring. As lenders fund fewer loans, Fannie (and Freddie Mac) sees less product in the secondary market. When their purchases slide it affects their ability to issue new MBS.