Freddie Mac has reported net income of $2.8 billion for the fourth quarter of 2025, a 14% decline year-over-year, driven primarily by lower net revenues and a shift in non-interest income dynamics.
For the full year, the government-sponsored enterprise (GSE) posted net income of $10.7 billion, down 10 percent from 2024, while net revenues of $23.3 billion decreased 3% year-over-year.
Net interest income remained a key earnings driver, rising modestly as mortgage portfolio growth and lower funding costs offset weaker short-term yields. However, non-interest income fell sharply due to net investment losses in 2025 compared with gains in the prior year. The company’s provision for credit losses increased to $1.3 billion on a full-year basis, reflecting continued credit reserve builds across both single-family and multifamily businesses.
“Freddie Mac’s 2025 results reflect our relentless focus on driving efficiencies to lower the cost of housing and restore the American Dream for families nationwide," said William J. Pulte, director, U.S. Federal Housing, and chair of the board of directors of Freddie Mac. "We delivered solid earnings, managed risk effectively, and identified new ways to increase supply and support affordability. Our investments in technology have streamlined the origination process, reduced unnecessary friction, and enabled our lenders to do business with us more cost-effectively.”
During Q4, Freddie Mac delivered $147 billion in market liquidity, financing roughly 565,000 homes and rental units, and ended the year with a mortgage portfolio of $3.7 trillion and net worth of approximately $70 billion. The enterprise reported a serious delinquency rate of 0.59% on single-family loans, unchanged from year-end 2024, highlighting stable credit quality amid evolving market conditions.
In operational highlights, the company’s new business activity grew, with $118 billion in single-family purchases in the fourth quarter — up from $100 billion a year earlier — and $29 billion in multifamily activity, underscoring continued demand in both segments. Freddie Mac also facilitated homeownership for more than 1.7 million families and renters in 2025, with a majority of financed properties affordable to low- and moderate-income households and first-time homebuyers representing just over half of purchase borrowers.
“Freddie Mac strengthened its financial position in 2025, earning net income of $10.7 billion on revenue of $23.3 billion and increasing its net worth to $70.4 billion," added Kenny Smith, CEO of Freddie Mac. "We helped more than 1.7 million families buy, refinance, or rent a home with the majority — 53% of single-family dwellings and 93% of rental units — affordable to low- and moderate-income households. This included about 400,000 homebuyers achieving homeownership for the first time. These achievements reflect the dedication of Freddie Mac’s outstanding staff, our lender partners, and the support of U.S. Federal Housing. I thank everyone who helped make these results possible.”
