Fannie Mae, Freddie Mac shares surge after federal agencies reveal privatization path

Published On Jan 3, 2025, 2:57 PM

Shares of Fannie Mae (FNMA) and Freddie Mac (FMCC) surged to multi-year highs due to a newly revealed path towards their privatization by U.S. federal agencies. The Treasury Department and the Federal Housing Finance Agency stated that they have amended agreements to ensure that the eventual exit from government conservatorship will be orderly, marking a significant step for these government-sponsored enterprises created to support the housing market. This news, combined with expectations of favorable actions from the incoming administration, contributed to the rise in shares, with Fannie Mae seeing a 24.4% increase and Freddie Mac climbing 23.2%.