Freddie Mac Feb investment portfolio up 34.7 pct

NEW YORK, March 25 (Reuters) - Freddie Mac FRE.N FRE.P said its investment portfolio grew by nearly 35 percent in February, after shrinking the prior two months, though late payments on loans it guarantees also continued to jump.

The government-controlled mortgage funding company said the unpaid principal balance of its mortgage-related holdings rose to $822 billion at the end of February, for an annualized 12.9 percent increase year to date.

In February 2008, the portfolio was $709.5 billion.

The company's total mortgage portfolio increased at a 3 percent annualized rate in February to $2.207 trillion.

The government is depending heavily on Freddie Mac and its larger counterpart Fannie Mae FNM.N FNM.P in its efforts to stimulate the U.S. housing market by buying more mortgage loans, easing refinancing and helping thwart foreclosures.

A temporary suspension of foreclosures during February contributed to rising single-family loan delinquency rates, Freddie Mac said in its monthly volume summary.

"Additional suspensions of foreclosures during 2009 may also adversely impact delinquency rates ...," the company sad.

Freddie Mac's total single-family delinquencies for February rose to 2.13 percent from 1.98 percent in January, and from 0.74 percent a year earlier. (Reporting by Lynn Adler; Editing by James Dalgleish)