In 2025, two of the market's best-performing stocks of the year aren't AI-focused tech companies but rather two of the United States' largest government-sponsored entities (GSEs). These stocks are Fannie Mae OTCMKTS: FNMA and Freddie Mac OTCMKTS: FMCC.
FHFA instructed Fannie Mae and Freddie Mac to prepare proposals for including cryptocurrency as an asset for mortgage reserves without converting to U.S. dollars.
Matthew Halbower, Pentwater Capital CEO, joins CNBC's 'Squawk on the Street' to discuss the Nippon–U.S. Steel deal, the potential for privatization of Fannie and Freddie, and more.
The housing market is seeing yet another big development brewing that could potentially shake up interest rates on home loans.
The Trump administration wants to sell shares in two government-controlled companies that are crucial for getting a mortgage. But it first needs to figure out what it wants the mortgage market to look like.
President Donald Trump is ready to make major reforms to government-owned housing-finance giants Fannie Mae and Freddie Mac and to potentially break with Republican orthodoxy by maintaining the federal conservatorship the companies have operated under for nearly two decades.
Libby Cantrill, PIMCO head of public policy, joins 'The Exchange' to discuss the future of Fannie Mae and Freddie Mac.
Bill Pulte, Fannie Mae and Freddie Mac chairman, joins 'Money Movers' to discuss the company's future, Trump's plans for the agencies and more.
I recommend junior preferred shares of Fannie Mae and Freddie Mac, as they offer significant upside and anti-dilution protection in any likely restructuring scenario. Common shares appear overvalued, already pricing in a successful recap and release, with little realistic upside based on my valuation models and government analysis. Trump's administration, with aligned FHFA and Treasury leadership, is poised to decide on recap and release within 90 days, making privatization likely this term.
Fannie Mae and Freddie Mac have surged on Trump privatization hopes, but common shares may now be overvalued, especially Fannie Mae. The government's senior preferred shares have a liquidity preference, limiting upside for common shareholders if GSEs are recapitalized. Fannie Mae is downgraded to Sell due to stretched valuation; Freddie Mac remains a Hold given more reasonable pricing.
Investors are betting that the Trump administration will remove the companies from government conservatorship.
The average rate on the 30-year fixed mortgage rose this week to 6.81%, according to the latest Freddie Mac data released on Thursday. That is up from last week's reading of 6.76%.