Federal National Mortgage Association (FNMA) Q2 2024 earnings summary

Executive summary

• Net income for Q2 2024 was $4.5 billion, up $164 million from Q1, with net worth reaching $86.5 billion as of June 30, 2024.

• Provided $95 billion in liquidity in Q2 2024, supporting approximately 330,000 home purchases, refinancings, and rental units.

• Net revenues increased to $7.34 billion in Q2 2024, up both sequentially and year-over-year.

• Home prices grew 3.0% nationally in Q2 2024, with a one-year national rate of 6.9%.

• Issued over $5 billion in single-family and $4 billion in multifamily social bonds in the first half of 2024.

Financial highlights

• Net interest income rose to $7.3 billion in Q2 2024, driven by higher deferred guaranty fee and portfolio income.

• Benefit for credit losses was $300 million in Q2 2024, up from $180 million in Q1, reflecting a single-family benefit offset by a multifamily provision.

• Single-family loan acquisitions totaled $85.9 billion in Q2 2024, a 38% increase from Q1, with about half for first-time homebuyers.

• Multifamily loan acquisitions were $9.3 billion in Q2 2024, with year-to-date at $19 billion, down from $25 billion in the first half of 2023.

• Administrative expenses increased slightly to $939 million in Q2 2024.

Outlook and guidance

• Economists expect two Fed rate cuts later in 2024, but no significant increase in housing activity.

• Home prices projected to rise 6.1% in 2024, with regional variation expected.

• Single-family mortgage originations forecasted to increase 16% in 2024 to $1.7 trillion, with purchases comprising 80%.

• Multifamily origination volumes forecasted at $245–$315 billion for 2024, down from $480 billion in 2022.

• Rent growth expected to remain below historical averages at 1%-1.5% in 2024.