Fannie Mae, the Federal National Mortgage Association, has announced higher revenue for the third quarter despite challenges in the housing market. The government-sponsored mortgage company reported a profit of $4.7 billion, up from $2.44 billion in the same period last year.
Revenue Increase and Business Performance
Fannie Mae saw a 1% increase in revenue, reaching $7.3 billion. Revenue from the single-family business rose by 2% compared to a year ago. However, sales from the multifamily business experienced a 5% decrease.
Housing Market Challenges
Chief Executive Priscilla Almodovar acknowledged the hurdles faced by the housing market in the third quarter. Factors such as higher mortgage rates, elevated home prices, and limited inventory impacted the industry. Additionally, renters encountered record-high rental rates.
Credit Losses and Delinquency Rates
Fannie Mae benefited from lower credit losses this quarter, with $652 million compared to a provision of $2.54 billion in the previous year. The serious-delinquency rate on single-family mortgages decreased to 0.54% from 0.69% a year ago. However, the multifamily mortgage delinquency rate rose to 0.54% from 0.26%, predominantly influenced by seniors housing portfolios.
Fannie Mae’s performance in the face of market challenges demonstrates its resilience in providing support for the housing sector.