From Investing.com: 2025-05-28 01:05:00

The Trump administration is pushing for the privatization of Fannie Mae and Freddie Mac. Treasury Secretary Scott Bessent is concerned about potential impacts on mortgage rates. However, the real benefit of Fannie and Freddie lies in the fees they collect, not lower interest rates. Historical trends show that interest rates don’t significantly impact the housing market. Tightened mortgage access in 2008 led to a crash in home values, but Fannie and Freddie didn’t need federal cash injection. Keeping Fannie and Freddie under public control is valuable, as privatization could lead to negative consequences for housing production and mortgage access.



Read more at Investing.com: Fannie and Freddie: It’s Not About the Rates