Fannie Mae and Freddie Mac Shares Soar on Privatization News
Fannie Mae and Freddie Mac shares jumped after federal agencies outlined a plan for their privatization, signaling a major shift in the housing market.
Fannie Mae, Freddie Mac, Privatization, U.S., Housing Market, Trump
Bengaluru: So, Fannie Mae and Freddie Mac are making headlines! Their shares just shot up to levels we haven’t seen in years. This all happened after the feds dropped some big news about how they plan to get these mortgage giants out of government control.
The U.S. Treasury and the Federal Housing Finance Agency announced they’ve tweaked their agreements with Fannie and Freddie. This is to make sure that when they finally do exit conservatorship, it won’t cause chaos in the housing market.
They’re even going to ask for public feedback before making any big moves. It’s a pretty big deal since these companies were created to help keep mortgage financing affordable but took a huge hit during the 2008 financial crisis.
Remember, they were bailed out with taxpayer money back then. Now, there’s talk about them possibly going public again around 2026. Billionaire Bill Ackman thinks the new administration will push for this change soon.
Fannie Mae’s shares jumped by over 24%, hitting $4.23, while Freddie Mac climbed about 23% to $4.15. It’s exciting to see how this will all unfold!