Freddie Mac reports strong Q1 as lower rates drive refinance growth

Freddie Mac posted a strong start to 2026, reporting $3.6 billion in first-quarter net income as lower mortgage rates boosted refinancing activity and the government-sponsored enterprise (GSE) continued to build capital. Its profit rose from $2.5 billion in the fourth quarter of 2025.

Speaking during the company’s earnings call on Thursday morning, Jim Whitlinger, the company’s executive vice president and chief financial officer, said that net income increased 27% year over year, while Freddie Mac’s total mortgage portfolio grew to $3.7 trillion.

The company provided roughly $116 billion in liquidity to the housing market during the quarter and helped 380,000 families buy, refinance or rent homes.

Freddie Mac also became the first GSE to securitize loans using VantageScore 4.0, Whitlinger said, following a recent move by regulators to expand credit scoring options in the mortgage market.

“These results demonstrate the earnings power of Freddie Mac,” Whitlinger said, citing higher net interest income and continued portfolio growth.

“We delivered strong first quarter results, with net income of $3.6 billion and net revenues of $6.1 billion, Freddie Mac CEO Kenny Smith added.

The rise in net revenue was driven largely by a 10% increase in net interest income to $5.6 billion. Freddie Mac also recorded a $320 million benefit for credit reserves, compared with a $280 million provision expense in Q1 2025. Whitlinger said the reserve release reflected stronger expectations for home-price growth.

Freddie Mac’s net worth climbed to nearly $74 billion at the end of March, up 18% from a year earlier, although the company remains below its regulatory capital requirements. Whitlinger said Freddie Mac’s total required capital stood at $161 billion, including stress and stability buffers.

Its single-family business generated $3 billion in net income during the quarter, up 32% year over year, as refinance activity accelerated amid lower mortgage rates earlier in the year.

Freddie Mac acquired $103 billion in new single-family business during the quarter, with refis accounting for 42% of total volume. That marked its highest quarterly refinance share in four years. New business was up from $78 billion posted in Q1 2025.

Whitlinger said Freddie Mac acquired more than twice as many refinance loans as it did a year earlier, helping nearly 100,000 additional households refinance over the past two quarters compared with the same period a year ago.

“This isn’t just a statistic,” Whitlinger said. “Each of those loans potentially represents a lower mortgage payment, the retirement of higher-cost debt, or improvements to accommodate a growing family in an existing home.”

The GSE financed 281,000 mortgages and enabled 79,000 first-time homebuyers to purchase a home, its press release explained.

Freddie Mac said the majority of homes and rental units it financed during the quarter were affordable to families earning 120% or less of the area median income. Among homebuyers purchasing a primary residence, 52% were first-time buyers.

The company’s single-family credit profile remained strong, with an average credit score of 758 on newly acquired loans and a serious delinquency rate of 0.6%.

In multifamily, Freddie Mac reported $582 million in first-quarter net income, up 9% year over year. New multifamily business volume increased 25% to $13 billion, with roughly two-thirds categorized as mission-driven affordable housing. Net revenue for multifamily was $1 billion.

Whitlinger also highlighted Freddie Mac’s continued shift toward fully guaranteed multifamily securitizations. The company securitized $24 billion in multifamily loans during the quarter, nearly all of which were fully guaranteed transactions.