Trump administration delays any move to free Fannie Mae and Freddie Mac
Treasury Secretary Scott Bessent said the government will not change the ownership structure of Fannie Mae and Freddie Mac within the next year, keeping them under conservatorship.
The Trump administration confirmed it will maintain federal oversight of Fannie Mae and Freddie Mac for the foreseeable future, with no plans to modify their shareholder structure within the next year. Treasury Secretary Scott Bessent said the benefits of any change for homeowners remain uncertain and cautioned that releasing the entities from conservatorship could lift mortgage rates, which he described as the administration’s “North Star.”
President Donald Trump has earlier said he is still contemplating selling part of the government’s stake in the two firms, a share bought after the 2008 financial crisis. Meanwhile, the Commerce Department reported a 5.2% decline in housing starts for September, reflecting a slowdown in residential construction. Mortgage rates have recently climbed to their highest level since November 2023, adding pressure to the housing market.
Why it matters
Continued government control of Fannie and Freddie could keep mortgage rates high, affecting homebuyers and the broader housing market.
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