What Could Happen if Fannie Mae and Freddie Mac Go Public Again?

The Big News

Fannie Mae and Freddie Mac—two of the most important companies behind U.S. home loans—might be taken public again by the end of 2025. Reports say the plan could value them at $500 billion, with the government raising around $30 billion. Their stock prices jumped about 20% on the news.

Both companies have been under government control since the 2008 financial crisis, when they were bailed out to keep the housing market afloat.

Why It Matters for Mortgage Rates

For everyday homebuyers and sellers, the main question is: Will this make mortgages more expensive?

• If the companies are privatized without the government backing their loans, experts say mortgage rates could rise by 0.6% to 0.9%.

• If the government keeps its guarantee in place, rates could actually stay the same or even go down, depending on how fees are handled.

In short: it all depends on the deal’s structure.

Risks and Rewards

If the government continues backing Fannie and Freddie, it could help keep rates lower, but it also means taxpayers could be on the hook if the housing market crashes again.

Industry groups, like the National Association of Realtors, have pushed for a “utility-style” model: one where the government guarantees loans but limits how much profit the companies can make, to reduce risk.

Political Moves Behind the Scenes

The Trump administration has reshaped the leadership at both companies, installing loyalists on their boards. This suggests the government has strong influence over whatever plan moves forward—whether the two firms are merged into one, kept separate, or sold off gradually.

A Look at the Numbers

• Fannie Mae backed about $64 billion in purchase loans last quarter.

• Freddie Mac supported $76 billion, with more than half going to first-time buyers.

• Both companies are still profitable, but their recent earnings dipped as they set aside more money for possible future losses.

Bottom Line

For homeowners and buyers, the possible public offering of Fannie Mae and Freddie Mac could shift mortgage rates depending on how much government support remains. The outcome could either help keep loans affordable—or add extra costs for borrowers.