Like its counterpart Fannie Mae, Freddie Mac extended its profitability streak in the third quarter.
The government-sponsored enterprise’s net income rose 17 percent year over year to $3.2 billion, while net revenue rose 19 percent to $6.8 billion. On a quarter-over-quarter basis, Freddie Mac’s net income slid 15.7 percent, while the net revenue jumped 13.7 percent.
Freddie Mac increased its net worth 19.8 percent year over year to $81 billion and provided $114 billion in mortgage-market liquidity during the quarter, supporting approximately 222,000 home purchases, 64,000 refinances and 134,000 rental units.
Bill Pulte | Credit: FHFA
“Freddie Mac delivered another strong quarter, with solid earnings and a growing mortgage portfolio,” Federal Housing Finance Agency Director Bill Pulte said in a press statement. “With direction from U.S. Federal Housing in the third quarter, the company began accepting the use of VantageScore’s credit scoring model by all lenders and continued to support our mission of making housing more affordable across the country.”
In the third quarter, Freddie Mac backed mortgages for 106,000 first-time homebuyers, accounting for 51 percent of single-family purchase acquisitions — up from 50 percent in Q3 2025, but down from 52 percent in Q2 2026.
Fifty-six percent of mortgages and 91 percent of multifamily units Freddie Mac financed were affordable to households earning less than 120 percent of the area median income (AMI).
Single-family and multifamily new business fell 1 percent and 36 percent respectively year over year, to $98 billion and $16 billion. Freddie Mac credited the declines to rising mortgage rates, which broke past 7 percent during the latter part of September.
Freddie Mac increased the amount it set aside for potential credit losses to $800 million, up from $175 million the previous year. The increase reflects anticipated continued mortgage rate fluctuations and deteriorating overall credit performance in the multifamily mortgage portfolio.
Freddie Mac Q3 2026 earnings visualized with AI assistance.
“Freddie Mac’s team has made home possible for millions of families across the country,” Freddie Mac CEO Kenny Smith said in the earnings release. “In the third quarter alone, we helped 420,000 families buy, refinance, or rent a home, including 106,000 first-time homebuyers.”
Fannie Mae released its earnings on Wednesday, with the government-sponsored enterprise’s net income up 8 percent year over year to $4.2 billion, while net revenue rose 5 percent to $7.7 billion. Its net worth also rose, growing 13 percent year over year to $119.6 billion.
