Here’s Why Housing Agencies’ Net Worth is Surging; Mortgage Rates Drop Like a Rock

Here’s Why Housing Agencies’ Net Worth is Surging; Mortgage Rates Drop Like a Rock

Both of the government sponsored enterprises (GSEs) posted strong earnings in the third quarter of the year. Freddie Mac announced comprehensive income of $1.8 billion while Fannie Mae's was $4.0 billion. Freddie Mac said its income was essentially unchanged from Q2 but lower than the $2.56 billion reported in the third quarter of 2018. The company had $2.79 billion in net revenue, $2.41 of which was interest income. This was down from $2.93 billion and $3.36 billion in the previous quarter and 3.55 billion and $3.26 billion a year earlier. Market-related losses were $0.3 billion, driven by a $0.4 billion loss from net interest rate impacts resulting from declining long-term interest rates. These losses were partially offset by a $0.1 billion gain from market spread impacts. Gains from sales