Government-sponsored mortgage giant Fannie Mae reported first-quarter financials on Wednesday that reflected steady performance on increased refinance demand and lower costs, though the company’s quarterly revenues were roughly unchanged at $7.3 billion.

Overall net income rose 5% over the quarter and 2% over the year to land at about $3.7 billion, helping to push Fannie Mae’s net worth past $112.6 billion, up from $98.3 billion a year ago.

Net interest income was 3% higher from a year ago at nearly $7.2 billion but 1% lower than the fourth quarter of 2025. Fee income, on the other hand, declined 2% annually but increased 30% from the fourth quarter.

Cost-cutting measures continue at the company, Fannie executives noted during an earnings call with investors Wednesday morning, underscoring a 19% decline in administrative expenses from the fourth quarter.

Bill Pulte, who chairs the boards of both Fannie Mae and fellow government-sponsored enterprise Freddie Mac, described Fannie as “far more effective and leaner” than a year ago in commentary accompanying the earnings statement.

“A financially sound and dependable Fannie Mae is essential to the long-term health of the housing and mortgage markets,” said Pulte, who also serves as director of the Federal Housing Finance Agency, which regulates the GSEs.

New single-family mortgage acquisitions during the first three months of 2026 totaled $99 billion, about $35 billion higher than a year ago but only $2 billion higher than the fourth quarter.

Surging refinance demand during the first quarter fueled the growth. Purchase acquisition share declined to 56% compared to 78% a year ago, while refinance acquisition share doubled from around 22% a year ago to 44% in the first quarter.

Average mortgage rates on 30-year fixed-rate home loans hovered near 6% or slightly lower through January and February, driven lower by a White House directive for Fannie and Freddie to purchase up to $200 billion in mortgage-backed securities.

Fannie’s refinance acquisitions rose $7 billion over the quarter and $30 billion over the year during the first quarter. However, purchase acquisitions fell by $5 billion from the fourth quarter to land just $5 billion higher than year-ago levels. The company’s conventional guaranty book decreased slightly to $3.56 trillion from $3.58 trillion in the fourth quarter.

Multifamily acquisitions at Fannie Mae, meanwhile, declined to $17.1 billion from $25.8 billion during the previous quarter, though its multifamily book of business exceeded $542 billion, nearly $8 billion higher than the fourth quarter.

Serious delinquency rates remained stable over the quarter across Fannie Mae’s single-family portfolio, with the 90-plus-day distress rate unchanged at 0.58%, only slightly above the 0.56% rate a year ago. Multifamily serious delinquency rates continue to show some signs of stress, rising to 0.78% from 0.74% in the fourth quarter and 0.63% a year ago.