Fannie Mae and Freddie Mac could go public by end of the year, housing chief says — what it could mean for your mortgage

Core Viewpoint - President Trump is considering taking Fannie Mae and Freddie Mac public, potentially by the end of 2025, as part of a strategy to run them more like businesses and reduce costs [2][3]. Group 1: Privatization Potential - The speculation around privatizing Fannie Mae and Freddie Mac has intensified following Trump's re-election, with discussions about ending their government conservatorship [2][3]. - Privatization could generate significant revenue, potentially billions of dollars, for both investors and the government [3]. - Since Trump's election, shares of Fannie Mae and Freddie Mac have increased over 700%, leading to a combined market value of approximately $20 billion as of October 20 [3]. Group 2: Market Impact - Fannie Mae and Freddie Mac back 70% of the mortgage market, and their privatization could reshape the housing landscape in the U.S. [3]. - Experts suggest that privatization would likely lead to increased mortgage rates, which could exacerbate the current housing affordability crisis [4].