Fannie Mae’s Profit Rises 23%

Fannie Mae, the largest buyer of mortgages, said fourth-quarter earnings rose 23% as homeowners refinanced loans at a record pace and lower interest rates cut its cost of capital.

The company, which is one of three government-sponsored enterprises involved in the housing market, had a profit from operations of $1.44 billion, or $1.40 a share, compared with net income of $1.16 billion, or $1.12 a share, a year earlier.

For the year, the company earned $5.38 billion, its 15th year of record earnings. Fannie Mae shares rose 95 cents to $79 on the NYSE.