Freddie Mac (FMCC) Q3 2025 earnings summary

Executive summary

• Net income for Q3 2025 was $2.8 billion, down 11% year-over-year, mainly due to a credit reserve build versus a release in the prior year.

• Net revenues for Q3 2025 were $5.7 billion, a 2% decrease year-over-year, driven by lower non-interest income, partially offset by higher net interest income.

• Net worth increased to $68 billion as of September 30, 2025, up from $56.4 billion a year earlier.

• Provided $124 billion in liquidity to the mortgage market in Q3 2025, supporting 483,000 families to buy, refinance, or rent a home, a 33% increase from Q2.

• 92% of eligible rental units and 54% of single-family homes financed were affordable to middle or low- to moderate-income families.

Financial highlights

• Net interest income rose 9% year-over-year to $5.5 billion, driven by mortgage portfolio growth and lower funding costs.

• Non-interest income declined 66% year-over-year to $284 million, mainly due to less favorable fair value changes and investment losses.

• Provision for credit losses was $175 million, compared to a $191 million benefit in Q3 2024, reflecting a credit reserve build in Single-Family.

• Net worth grew to $68 billion at quarter end, a 20% year-over-year increase.

• Cumulative draws from Treasury totaled $71.6 billion, with cumulative dividend payments at $119.7 billion.

Outlook and guidance

• House price forecast revised to 0.7% increase over the next 12 months and 0.9%–2.7% over the following 12 months, down from previous estimates.

• Management highlights significant risks and uncertainties, including regulatory changes, conservatorship status, and market volatility.

• National home prices increased by an average of 1% over the past year.

• Management is focused on increasing housing supply and supporting both single-family and multifamily markets.