Bill Ackman told Pershing Square's third-quarter earnings call that releasing Fannie Mae (FNMA) and Freddie Mac (FMCC) from government conservatorship is a political imperative for Republicans, putting the value created at half a trillion dollars, 80% of it held by taxpayers. He called that figure conservative and said Treasury Secretary Scott Bessent has told him ownership should be resolved in 2027 or 2028. The article notes Pershing Square owns about 10% of both companies, and the Treasury holds warrants to buy 79.9% of each company's common stock, which will determine what remains for other shareholders. Both stocks have traded over-the-counter since 2010 and are down about 50% over the past year, and the article concludes that following Ackman is probably not the best move for most investors, since outcomes hinge largely on Washington decisions.
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Freddie Mac said the average 30-year fixed mortgage rate fell to 7.32% from 7.40% last week, the first weekly decline since late August, though it remains above 6.19% a year ago. The 15-year fixed rate, often chosen by borrowers refinancing, eased to 6.68% from 6.71%. Rates have climbed since late February, when the U.S. war with Iran began and pushed oil prices and inflation higher, and they generally track the 10-year Treasury yield, which has eased in recent weeks after hitting its highest level since 2002. The rise has added about $355 a month to the cost of a $400,000 home loan, and home sales remain stalled. Fannie Mae forecasts the 30-year rate will average 7.4% in the fourth quarter of 2026 and 7.5% in 2027.
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