Executive Perspectives Blog
Apartment properties with five to 50 units make up around 29 percent of the multifamily market and provide affordable homes to a major portion of the nation's moderate- and low-income renters. Given the widening gap between the supply of and demand for affordable rental housing, it's more important than ever to finance these smaller properties. Our new, innovative Small Balance Loan (SBL) offering creates a broad platform for financing loans ranging from $1 million to $5 million and bringing much-needed liquidity, consistency, and stability to this market segment.
A pickup in household formations and overall housing activity depends greatly on the pace of economic growth. The good news for 2015 is that the U.S. economy appears well poised to sustain about a 3.0 percent growth rate in 2015 – only the second year in the past decade with growth at that pace or better. There are several reasons for the expected better macroeconomic performance. Governmental fiscal drag has turned into fiscal stimulus, lower energy costs support consumer spending and business investment, further easing of credit conditions for business and real estate lending support commerce and development, and more upbeat consumer and business confidence, all of which portend faster economic growth in 2015. And with that, the economy will produce more and better paying jobs, providing the financial wherewithal to support household formations and housing activity.
Today Freddie Mac announced our third quarter financial results, reporting net income of $2.1 billion and comprehensive income of $2.8 billion. Based on these results, we will be returning an additional $2.8 billion to taxpayers in the fourth quarter – bringing the total paid to $91 billion. For more details about our results and progress, please listen to a recording of our call with the media or read the additional resources below.
Mortgage interest rates are holding near historic lows and housing remains affordable across most of the U.S. For those who have their financial house in order, it's a great time to buy a home. But many potential buyers can't because they don’t qualify for a mortgage. And many aren't even attempting because they believe they could not qualify.