Freddie Mac

Freddie Mac is a U.S. government-sponsored enterprise (GSE) that provides liquidity to the housing-finance market by purchasing mortgages and issuing mortgage-backed securities (MBS). U.S. mortgage rates have recently risen to elevated levels, and Freddie Mac has warned they could remain around 6.3% through 2027. Meanwhile, initiatives involving the securitization of construction loans, new credit-scoring models, Credit Risk Transfers, loan-review rules and the relisting of GSEs continue to advance. Changes in Freddie Mac’s policies and operations affect homebuying costs, credit availability and the stability of the MBS market, making them important areas to watch.