Rising interest rates helped government-sponsored mortgage repurchaser Freddie Mac boost second quarter earnings, but managers expect declining interest rates will inflict a "significant reversal" of such gains in the third quarter. Freddie Mac today released preliminary results for the first half of the year, estimating the company generated $1.2 billion in net income in the second quarter and $2.7 billion for the year. Freddie Mac's latest projection of year-to-date net income is up about $300 million from an earlier estimate at the end of July. Most of the boost in net income -- about $200 million -- came from adjustments in Freddie Mac's mortgage guarantee business. Net income "benefited significantly from mark-to-market gains recorded for its guarantee asset and derivatives, as int...
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