The company reported strong results for the fourth quarter and for the year as a whole. Fourth quarter 2000 diluted earnings per common share of $0.89 represents a 13% increase over the fourth quarter 1999, says Clarke. Net income for the fourth quarter 2000 was $663 million, compared to $594 million for the same period a year ago and $645 million for third quarter 2000.
The company reports that total revenues for 2000 reached $4.457 billion, a 10% increase over 1999 total revenues of $4.055 billion. Fourth quarter 2000 revenues were $1.159 billion, an increase of 10% over fourth quarter 1999 at $1.049 billion, and up from $1.125 billion in third quarter 2000. Net interest income on earning assets totaled $2.838 billion for 2000, a 12% percent growth from 1999 net interest income on earning assets of $2.540 billion.
The increase in net interest income for 2000 was driven by a $53.5 billion, or 18%, increase in the average balance of the retained portfolio. Net interest income on earning assets grew to $738 million in fourth quarter 2000, compared to $664 million in fourth quarter 1999 and $737 million in third quarter 2000. The increase in net interest income from third quarter 2000 was driven by a $15.7 billion, or 4%, increase in the average balance of the retained portfolio, Clarke said.
All reports indicate that the housing market is growing strong. Housing starts are still running above a strong 1.5 million annual rate, which is quite strong by historical standards.
In 2001, Freddie Mac's expects home sales to increase if interest rates fall, or remain at current low levels, company officials say. House price growth is now at close to an 8% annual rate. Refinancings are expected to be about half of the market this year, if mortgage rates fall to the projected 6.6% average for 2001, Clarke says.
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