Fannie Mae this morning reported it had $3.66 billion in net income for the first quarter of 2025, down from net income of $4.13 billion for the prior quarter. The company, however, now has a net worth of $98.3 billion as of March 31, 2025, up nearly 4% from $94.7 billion at the end of 2024.
Income was driven by “strong” revenue of $7.1 billion in Q1 2025, which came primarily from guaranty fees on the company’s $4.1 trillion guaranty book of business. Most of that income was in single-family homes: $5.9 billion of single-family revenues was generated from a $3.6 trillion conventional guaranty book with an average charged guaranty fee of 48.1 basis points, according to the GSE.
What’s the present focus at the company? That is “on operational efficiency and ensuring that Fannie Mae is a world-class operator,” said Bill Pulte, director of the Federal Housing Finance Agency (FHFA), which oversees Fannie Mae and Freddie Mac, on an 8 a.m. earnings call.
“While assets are significant,” he continued, “there remains great opportunity to trim fat, turn the business around, generate more earnings, and do so all while ensuring safety and soundness. A profitable Fannie Mae — one with a strong balance sheet and strong capital focused on delighting customers — means a safe and sound U.S. mortgage market.”
Fannie Mae noted that 76% of the underlying mortgages in its single-family guaranty conventional book were below a 5% interest rate as of March 31, 2025. In the GSE’s single-family business, purchase acquisition volume was down by nearly $3 billion, while refinance acquisition volume increased by nearly $5 billion for Q1 2025.
“There remains great opportunity to trim fat, turn the business around, generate more earnings, and do so all while ensuring safety and soundness." —FHFA Director Bill Pulte
Single-family conventional acquisition volume was $64.3 billion for the most recent quarter, compared to $62.3 billion for the first quarter of 2024. Purchase acquisition volume, of which Fannie Mae noted about half was for first-time homebuyers, decreased to $50.1 billion in the first quarter of 2025 from $53.0 billion in the first quarter of 2024.
Refinance acquisition volume was $14.2 billion in the first quarter of 2025, according to Fannie Mae, an increase from $9.3 billion in the first quarter of 2024.
The company provided some $76 billion in liquidity in Q1 2025, which allowed for the financing of some 287,000 home purchases, refinancings, and rental units. The company also acquired approximately 144,000 single-family purchase loans — about half of those for first-time homebuyers — and around 50,000 single-family refinance loans during the first quarter of 2025.
Home prices grew by an estimated 1.4% on a national basis in the first quarter of 2025, according to the Fannie Mae Home Price Index. The company also pointed to a dip of 20 basis points in the U.S. weekly average 30-year fixed-rate mortgage rate, which decreased from 6.85% at the end of last year to 6.65% as of the end of Q1 2025.
