Freddie Mac Reports $2.8 Billion Net Income in Q1 2025, Driven by Increased Net Interest Income

Freddie Mac reported its financial results for the first quarter of 2025, revealing a net income of $2.8 billion, a 1% increase from the same period in 2024. The company's net revenues reached $5.9 billion, marking a 2% year-over-year rise, primarily driven by higher net interest income, which increased by 7% to $5.1 billion. However, this was partially offset by a 25% decline in non-interest income, which fell to $750 million. As of March 31, 2025, Freddie Mac's net worth stood at $62.4 billion, up from $50.5 billion a year earlier, with the liquidation preference of senior preferred stock increasing to $132.2 billion.

In terms of operational performance, Freddie Mac provided $88 billion in liquidity to the mortgage market during the first quarter, facilitating the financing of 313,000 home purchases, refinancings, and rental units. The company's mortgage portfolio grew by 3% year-over-year to $3.6 trillion, with the Single-Family segment increasing by 2% to $3.1 trillion and the Multifamily segment rising by 5% to $467 billion. The company reported credit enhancement coverage on 62% of its Single-Family mortgage portfolio and 93% of its Multifamily portfolio, indicating a robust risk management strategy.

Freddie Mac's strategic developments included a focus on expanding its market coverage and enhancing its product offerings. The company noted an increase in the average loan size of new acquisitions, attributed to higher conforming loan limits and house price appreciation. The Single-Family segment's net revenues increased by 10% year-over-year, while the Multifamily segment experienced a 27% decline in net revenues, primarily due to lower non-interest income from held-for-sale loan purchases and securitization activities.

Looking ahead, Freddie Mac's management expressed cautious optimism regarding market conditions, acknowledging the potential impact of economic factors such as interest rates and housing prices on future performance. The company remains committed to its mission of providing liquidity and stability to the U.S. housing market, while navigating the complexities of operating under conservatorship. The outlook for the remainder of 2025 will depend on the evolving economic landscape and regulatory environment, as well as the company's ability to adapt to changing market conditions.