Freddie Mac reported its July monthly volume summary this morning. The report showed a sharp contraction in its retained portfolio, -18.6% versus -1.4% in June. This brings year-to-date annualized growth to essentially flat at 0.2%.
Retained purchases totaled $14.4 billion, down from $29.8 billion in June. More than offsetting the purchases were sales totaling nearly $10 billion and liquidations of $15.7 billion, leaving the ending balance of the portfolio at $711.0 billion in July versus $722.2 in the previous month end. Freddie Mac said that for purposes of their voluntary growth limit with OFHEO, they estimate their total retained mortgage at $702.6 billion. Finally, retained portfolio mortgage purchase agreements entered into in July dropped to $2.6 billion from $19.1 billion.