WASHINGTON, Aug 30, 2007 (AFP) - Freddie Mac, one of the biggest players in America's mortgage sector, said Thursday its latest quarterly profit had slumped 45 percent because of housing and mortgage market 'volatility.'

Falling property sales and surging foreclosures have severely dented Freddie Mac's profit growth. Mortgage firms across America are reeling from the housing downturn which some analysts say could get worse before it improves.