Fannie, Freddie and Ginnie do $13.5B in apartment investment lending biz during Q1, +81% YoY.

Bonds backed by Fannie Mae and Freddie Mac tied to apartment investments soared to a record as the government-supported mortgage companies made low-cost loans on rental properties amid a continued slide in home values. Fannie Mae, Freddie Mac and Ginnie Mae sold $13.5 billion of securities tied to apartment buildings in the first quarter of 2012, an 81 percent increase from the year-earlier period and up from $5.2 billion issued in all of 2008, according to data compiled by Bloomberg. It’s the highest quarterly issuance since records began in 1993.

Apartment Building Investment Loans from Freddie, Fannie and Ginnie

The interest rate for a 10-year, fixed multifamily loan designated for purchase by Fannie Mae and Freddie Mac was 4.1 percent on March 2, figures from New York real estate investment banking firm Cushman & Wakefield Sonnenblick Goldman show. The rate is for a mortgage that covers as much as 80 percent of a property’s value. That same loan was 5.6 percent a year ago, the company said.

Apartment rents climbed 4.1 percent in the 12 months through December, according to Axiometrics. Multifamily landlords are projected to see their rental revenue increase by 6.7 percent this year, as little new supply comes to market. “As long as we have stress in the single-family market, we’re going to see renting as a viable alternative to more people,” said Fannie’s Johnson.

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