Freddie Mac released its third-quarter 2025 earnings on Thursday morning, reporting a net income of $2.8 billion. While up from Q2 2025’s $2.4 billion, earnings for the government-sponsored enterprise (GSE) are down 11% year-over-year.
The company says the decrease is attributed to “a credit reserve build in the current period compared to a credit reserve release in the prior year period.”
At the end of Q3, Freddie’s net worth was $68 billion, and its total mortgage portfolio was $3.6 trillion.
“In the third quarter, Freddie Mac earned $2.8 billion of net income on $5.7 billion of [net] revenue as we worked to restore the American Dream for families across the country,” said Bill Pulte, director of the Federal Housing Finance Agency — Freddie Mac’s regulator — in a statement. “In doing so, we helped 483,000 Americans buy, refinance or rent a home, including 106,000 first-time homebuyers. But we are not resting on these results. The country needs more supply, and we are looking closely at ways to help drive more homebuilding in both the multifamily and single-family markets.”
Net income, which decreased 2% year-over-year, was primarily driven by lower non-interest income, Freddie Mac said.
Overall, the GSE helped to finance 288,000 mortgages, up from 264,000 mortgages in Q2 2025, with 54% of eligible loans affordable to low- to moderate-income families. It also financed 195,000 rental units, up from 99,000 in Q2 2025, 92% of which were units eligible to be affordable to low- to moderate-income families.
First-time homebuyers represented 50% of new single-family home purchase loans, down from Q2 2025’s 53%.
During the earnings call, executive vice president and chief financial officer Jim Whitlinger shared that Freddie “facilitated the flow of more than $124 billion of liquidity to U.S. housing,” up from the previous quarter’s $106 billion.
The $18 billion in additional liquidity drove a 33% increase in the number of American families we help buy, refinance or rent a home,” he added.
During the call, Whitlinger highlighted Freddie Mac’s efforts to support affordable housing, including leveraging a higher Low Income Housing Tax Credit (LIHTC) equity cap. Since 2018, Freddie Mac has invested over $5 billion in the program, supporting the construction or renovation of 33,000 affordable rental homes.
The company also reported steady progress in digital mortgage technology, citing recent upgrades to its suite of lender tools cut costs per loan by an average of $1,700, which is $200 more in savings compared to two years ago.
Single-family and multifamily stats
Net income from Freddie Mac’s single-family business reached $2.3 billion for the quarter, falling 9% from last year, but up from last quarter’s $2.1 billion. Single-family mortgage volume grew 2% year over year to $3.1 trillion.
Provision for credit losses totaled $118 million, mainly due to new loan acquisitions.
In the multifamily sector, net income declined 20% year over year to $426 million. The segment expanded new business activity to $25 billion in the quarter, up from $12 billion in the prior quarter. Multifamily mortgage holdings grew to $480 billion.
Net interest income for the third quarter was $5.5 billion, up $456 million or 9% year over year.
“The primary driver for the increase was higher guaranteed net interest income driven by continued growth in the single-family mortgage portfolio, which increased 2% year over year. In addition, a multifamily business strategy change resulted in increased volume of fully guaranteed securitization,” Whitlinger said.
