Will Privatizing Fannie Mae And Freddie Mac Mean Higher Mortgage Rates?

Fannie Mae and Freddie Mac provide liquidity and support for the U.S. mortgage market. For the past 16 years, the two enterprises have been subject to close supervision by the federal government. The arrangement, also known as ‘conservatorship,’ was established in 2008 after the collapse of the housing market. Conservatorship has, at times, restricted Fannie and Freddie’s ability to raise capital. With President Trump’s second term underway, some prominent voices are calling for Fannie and Freddie’s return to private markets. The move could potentially impact the rates offered for new mortgages in the U.S..

Chapters:
0:00 Intro
01:26 Chapter 1: Fannie & Freddie
05:22 Chapter 2: Conservatorship
07:57 Chapter 3: What happens next?
09:03 Chapter 4: Implications for the housing market

Correspondent: Diana Olick
Producer by: Carlos Waters
Edited by: Andrea Miller
Camera: Van Appelgate
Senior Producer: Shawn Baldwin
Graphics: Jason Reginato
Additional Footage: Getty Images, Yahoo! Finance
Additional Sources: Cato Institute, Congressional Budget Office, Federal Housing Finance Agency, Mortgage News Daily, S&P Global, Realtor.com

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Will Privatizing Fannie Mae And Freddie Mac Mean Higher Mortgage Rates?

Post from CNBC on February 15, 2025

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