Federal National Mortgage Association (FNMA) Q3 2024 earnings summary

Executive summary

• Net income for Q3 2024 was $4.0 billion, down from Q2 and Q3 2023, with net worth rising to $90.5 billion as of September 30, 2024.

• Provided $106 billion in liquidity, supporting 383,000 home purchases, refinancings, and rental units.

• Net income decreased sequentially due to lower fair value gains and reduced benefit for credit losses.

• Home prices rose 0.9% in Q3 2024 and 5.9% year-to-date; 30-year fixed mortgage rates fell from 6.86% to 6.08% during the quarter.

• Net interest income remained stable quarter-over-quarter.

Financial highlights

• Q3 2024 net income was $4.0 billion; net revenues were $7.3 billion, nearly unchanged from Q2 2024.

• Fair value gains dropped to $52 million from $447 million in Q2 2024 and $795 million in Q3 2023.

• Benefit for credit losses was $27 million, down from $652 million in Q3 2023; multifamily provision for credit losses rose to $424 million.

• Net interest income for Q3 2024 was $7.28 billion, nearly flat compared to Q2 2024.

• Aggregate indebtedness stood at $125.2 billion; corporate liquidity portfolio was $60.1 billion at quarter end.

Outlook and guidance

• Home price growth projected at 5.8% for 2024, slowing to 3.6% in 2025; regional variation expected.

• Total home sales expected at 4.8 million units in 2024, rising to 5.2 million in 2025.

• Single-family mortgage originations forecasted to grow to $1.7 trillion in 2024, with purchases comprising 78%.

• Multifamily origination volumes expected at $275 billion in 2024, down from $480 billion in 2022.

• Multifamily property values expected to decline further, with a longer recovery period anticipated.