MCLEAN, Va., July 31, 2020 (GLOBE NEWSWIRE) -- Freddie Mac (OTCQB: FMCC) Multifamily projects marginal reductions in rents and increased vacancies as the multifamily market responds to the economic effects of the COVID-19 pandemic. Although total multifamily origination volume is expected to decline in 2020 compared with 2019, the company anticipates its own production volume will remain consistent as it serves its mission to provide liquidity to the market.
“The economic challenges brought on by the COVID-19 pandemic will have a meaningful impact on the multifamily market in 2020,” said Steve Guggenmos, vice president of Multifamily Research and Modeling at Freddie Mac. “The industry entered the current recession on solid footing and is well-positioned to absorb the impacts of the recession due to substantial growth over the past several years. While we anticipate the total multifamily volume to decrease in 2020, Freddie Mac is supporting lending liquidity as other market participants moved to the sidelines.”
The Multifamily 2020 Midyear Outlook from Freddie Mac’s Multifamily Research Center is available online here. The paper outlines several key findings:
Freddie Mac Multifamily is the nation's multifamily housing finance leader. Historically, more than 90% of the eligible rental units we fund are affordable to families with low-to-moderate incomes earning up to 120% of area median income. More than 90% of the mortgages purchased support rental units for households earning 120% of area median income or below. Freddie Mac securitizes about 90% of the multifamily loans it purchases, thus transferring the majority of the expected credit risk from taxpayers to private investors.
Freddie Mac makes home possible for millions of families and individuals by providing mortgage capital to lenders. Since our creation by Congress in 1970, we've made housing more accessible and affordable for homebuyers and renters in communities nationwide. We are building a better housing finance system for homebuyers, renters, lenders and taxpayers. Learn more at FreddieMac.com, Twitter @FreddieMac and Freddie Mac's blog FreddieMac.com/blog.
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