Barrons·2025-11-07 20:51Core Viewpoint - Federal Housing Finance Agency (FHFA) Director Bill Pulte emphasizes the need for home builders to increase construction to lower new home prices, highlighting the role of Fannie Mae and Freddie Mac in providing liquidity to builders [3][5][6]. Summary by Relevant Sections Home Builders and Construction - Pulte urges builders to ramp up construction to address high home prices, stating that those not building will be scrutinized for artificially constricting supply [6][7]. - He mentions that Fannie Mae provides over $8 billion in liquidity to Lennar and over $5 billion to D.R. Horton, indicating significant financial support for large builders [5][6]. Fannie Mae and Freddie Mac - Pulte indicates that Fannie Mae and Freddie Mac are likely to remain under conservatorship, with a decision on a potential IPO expected soon [5][9]. - He notes that the companies may consider taking equity stakes in technology firms, which could diversify their investment portfolio [11]. Market Context and Future Outlook - The housing market is facing a supply deficit of approximately 3 to 4 million homes, impacting affordability [7]. - Pulte expresses confidence that the conservatorship will not disrupt operations and may even enhance stability in the mortgage market [9].