Fannie Mae posts $4B profit as first-time buyers power purchase surge

Fannie Mae reported $4.0 billion in net income for the second quarter of 2026, as a spring surge in purchase activity pushed the government-sponsored enterprise's single-family acquisition volume to its highest level since Q3 2022.

The results, filed with the US Securities and Exchange Commission, mark the 34th consecutive profitable quarter for Fannie Mae.

Net revenues rose 4% to $7.6 billion both quarterly and year over year, while net worth climbed to $116.5 billion from $112.7 billion in the first quarter.

"The strength of our core guaranty business and financial discipline enabled us to deliver another quarter of solid earnings and real impact," said Peter Akwaboah, Fannie Mae's acting chief executive officer and chief operating officer.

"We provided $125 billion in mortgage market liquidity, supporting 417,000 home purchases, refinances, and rental units, including helping almost 110,000 borrowers buy their first home."

First-time buyers carry the purchase market

Single-family purchase acquisitions reached $72.8 billion in Q2, up 32.6% from $54.9 billion in Q1 and 13.2% ahead of the same quarter one year earlier.

Total single-family acquisition volume hit $111.2 billion, the highest quarterly figure since Q3 2022.

Of the approximately 201,000 single-family purchase loans financed, nearly 110,000 went to first-time buyers, who accounted for 55% of all single-family purchase acquisitions.

For originators navigating a rate-constrained market, that concentration signals where active purchase volume is being generated. It is also a segment that demands deeper guidance on down payment options, qualification thresholds, and mortgage insurance — areas where broker expertise is most visible.

With Gen Z now claiming a record share of the US purchase mortgage market, that first-time buyer weight in Fannie's book is likely to hold in the quarters ahead.

Refinance acquisitions fell 12.3% quarter over quarter to $38.4 billion, consistent with rate pressure during the period, but remained well above the $19.8 billion recorded in Q2 2025.

Fannie Mae  ·  Second Quarter 2026  ·  Key metrics & mortgage acquisitions

Single-family acquisition volume — purchase vs. refinance ($B)

Q2 2026 mortgage acquisitions — households supported (~417,000 total)

Source: Fannie Mae Second Quarter 2026 Earnings Release and Form 10-Q, filed July 29, 2026 (SEC). SF delinquency rate = loans 90+ days past due or in foreclosure as a % of single-family conventional guaranty book. CET1 return is illustrative. Data: mpamag.com/us

Appraisal alternatives reach $3 billion in borrower savings

Fannie also used the Q2 report to highlight the expanding role of appraisal alternatives in reducing upfront borrowing costs.

The company estimates its value acceptance and value acceptance plus property data options — both available through Desktop Underwriter — have generated $3 billion in borrower savings since 2018 across 5.34 million loans, based on an approximate weighted-average saving of $550 per loan.

"Lenders are using our enhanced Desktop Underwriter services to drive speed, certainty, and a more seamless borrower experience," said Jake Williamson, Fannie Mae's executive vice president and head of single-family.

"We are using technology with the goal of modernizing the lending process and lowering up-front mortgage costs."

For brokers who have been following how appraisal modernization is reshaping the loan origination process, these tools — expanded further through FHFA policy updates that lifted appraisal waiver eligibility to 90% LTV on standard waivers — represent one of the more practical cost-reduction levers available on eligible loans today.

The credit profile of Fannie's single-family book remained stable: the serious delinquency rate held at 0.58% at the end of June, and the weighted-average FICO score at origination across the guaranty book was 753.

The provision for single-family credit losses rose to $226 million from $103 million in Q1, driven primarily by new acquisitions and newly delinquent loans.

On the multifamily side, acquisition volume declined to $14.2 billion from $17.1 billion in Q1, with the provision for multifamily credit losses rising to $259 million, attributed to weaker property valuations and slower net operating income growth.

Fannie's newly introduced Purchase Application Level Index showed purchase application dollar volume down 14.8% year over year for the week ending July 24, a signal worth monitoring as the summer market develops.

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