Billionaire Bill Ackman proposes a merger of Fannie Mae and Freddie Mac to address the housing market crisis. The U.S. housing market struggles with high prices and mortgage rates. Ackman’s plan aims to lower borrowing rates and simplify oversight. Critics warn of new risks, but the proposal could have a lasting impact on the market.

The housing market in 2025 is burdened by high mortgage costs, affecting both sellers and buyers. Existing-home sales dropped in June, while builder sentiment remains negative. Ackman’s merger proposal for Fannie Mae and Freddie Mac could streamline operations and lower mortgage rates, offering potential benefits but also risks.

President Trump suggests merging Fannie Mae and Freddie Mac into a single entity, aligning with Ackman’s proposal. This idea isn’t new, but the potential merger raises questions about market structure and risk. Ackman and Trump both advocate for significant changes to address ongoing housing market challenges.

The potential merger of Fannie Mae and Freddie Mac could impact mortgage rates and borrowing costs. While the proposal aims to cut costs and streamline oversight, uncertainties remain about market liquidity and risk. Ackman and Trump’s proposals signal a shift in housing finance discussions, with potential long-term implications.

Read more at Yahoo Finance: Billionaire Bill Ackman floats bold fix for the housing market crisis