Fitch Ratings has lowered its loss expectations by an average of 20 basis points for Fannie Mae and Freddie Mac credit risk transfers for the second half of the year. Strong collateral performance coupled with increased home price appreciation and a shorter term to maturity has led to the lower loss projections. In fact, Fitch noted that home prices in the respective pools have increased by 20 percent on average since issuance and 3.5 percent since January.