Fannie Mae Quarterly Earnings Increase
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Fannie Mae, the largest buyer of home mortgages, said second-quarter earnings rose 4.4% as low interest rates fueled home buying and cut the company’s borrowing costs.
Fannie Mae’s net income increased to $1.46 billion, or $1.44 a share. Operating earnings, which exclude changes in the market value of derivatives holdings, rose 20% to $1.57 billion, or $1.55 a share, beating estimates by 3 cents.
The company had more loans to buy as consumers took advantage of mortgage rates that have averaged below 7% since 2000 by refinancing loans and buying homes. A wider spread between what Fannie Mae makes from its investments and its borrowing costs also is boosting earnings.
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