Scan how Federal Home Loan Mortgage reacts to shifting mortgage rates, then compare it with list of solid balance sheet and fundamentals (25 results) to see which housing finance players appear better positioned on quality.
To own Federal Home Loan Mortgage, you need to believe its role in U.S. housing finance can still create value even with modest forecast revenue growth of 1% a year and a path from current losses toward break even. The recent dip in quoted mortgage rates matters mainly through refinancing appetite and guarantee fee flows, but this single survey readout does not materially change that bigger picture.
In the near term, the key swing factor remains how refinance driven single family volumes hold up against rate volatility. The largest operational risk sits in its regulatory capital shortfall and reliance on higher risk wholesale funding. Credit reserve assumptions tied to house prices and the mix shift toward guarantee fee dependent multifamily earnings remain important watchpoints.
One of the more relevant data points around this move in quoted mortgage rates is the size and profile of Freddie Mac's single family book. The US$3.7b figure given here appears understated relative to public filings. Even on this number, the scale is large, and management has leaned on high credit quality metrics like a 53% average loan to value and a 753 average credit score.
Those underwriting facts shape how lower rates might affect the story. If refinancing volumes become more supportive, that portfolio and Freddie Mac's 51% GSE share give it meaningful exposure to fee based activity. The same book would be sensitive if rate swings or house price assumptions reverse, which could bring credit reserve builds and higher capital pressure back into focus.
Federal Home Loan Mortgage's narrative points to forecast revenue of US$23.7b and earnings of US$0.0 thousand by 2029. This implies annual revenue growth of 1.2% and an earnings swing of US$24.0m from earnings today of a US$24.0m loss.
Discover why Federal Home Loan Mortgage's fair value signals a 296% potential upside from its current price, which could narrow quickly.
Four fair value views from the Simply Wall St Community span a wide band between US$9.38 and US$47.12 per Freddie Mac share, which shows how far opinions can stretch. You are weighing that dispersion against refinancing risk, capital requirements and housing policy shifts, all of which could reshape Freddie Mac's longer run earnings power. Explore the alternative viewpoints before deciding how this fits your portfolio.
Explore 3 other Federal Home Loan Mortgage fair value estimates, including one that suggests it could be worth just $9.38!
Don't just follow the ticker. Dig into the data and build a conviction that's truly your own.
Once you have formed a view on Federal Home Loan Mortgage, it can help to scan a wider field of opportunities so your portfolio is not overly tied to a single housing finance story.
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