Freddie Mac’s Q3 profit declines as higher projected mortgage rates push credit-loss provisions

Freddie Mac reported $3.2 billion in net income for the third quarter of 2026, a 17% increase from a year earlier, as higher net revenues and lower expenses offset a larger provision for credit losses.Despite the annual increase, the government-sponsored enterprise’s third-quarter 2026 performance weakened from the second quarter, with net income falling 16% quarter over quarter.Net revenues rose 14% from Q2 2026 and 19% from Q3 2025 to $6.8 billion. That was driven largely by a swing in non-interest income — up from a $19 million loss to $933 million in income. Net interest income rose 8% on an annual basis to $5.9 billion, which was 2% lower than Q2 2026’s $6.01 billion. Non-interest income increased to $933 million from $284 million a year earlier, which was primarily driven by the impact of interest rate risk management activities and investment gains and losses. “Freddie Mac‘s team has made home possible for millions of families across the country,” CEO Kenny Smith said in a statement. “In the third quarter alone, we helped 420,000 families buy, refinance, or rent a home, including 106,000 first time homebuyers. We earned net income of $3.2 billion on net revenue of $6.8 billi...