Billionaire investor Bill Ackman says the midterm elections could be a turning point for releasing Fannie Mae and Freddie Mac from government control, and both stocks have risen more than 60% from Oct. 14 through Monday's close. Ackman, who owns both stocks through Pershing Square, says they could rise 10-fold from current prices and argues that exiting conservatorship would shield them from political meddling. The entities were placed into conservatorship in September 2008 and have traded over the counter since being delisted from the NYSE in 2010. Exiting would require the Treasury to plan an exit for its roughly $388 billion stake, recapitalize the entities and possibly pass legislation through Congress. Treasury Secretary Scott Bessent said the administration could tackle the issue before Trump's term ends, while aiming to keep the spread on agency mortgages over Treasuries from increasing.
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Freddie Mac said the benchmark 30-year fixed mortgage fell to 7.32% from 7.40% last week, the first weekly decline since late August, though it was 6.19% a year ago. The 15-year fixed rate eased to 6.68% from 6.71%. Rates have climbed since late February, when the U.S. war with Iran began and pushed up oil prices and inflation, and the 10-year Treasury yield surged above 5.30% earlier this month before easing to around 5% on Thursday. The rise has added about $355 a month to the cost of a $400,000 loan and has stalled U.S. home sales. Fannie Mae projects the 30-year rate will average 7.4% in the fourth quarter and 7.5% in 2027.
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Freddie Mac said the average 30-year fixed mortgage rate eased to 7.32% this week from 7.40% last week, its first pullback since late August, though it remains well above 6.19% a year ago. The 15-year fixed rate dipped to 6.68% from 6.71%, compared with 5.44% a year earlier. Rates have climbed since late February, when the U.S. war with Iran began and pushed up oil prices and inflation, and they generally track the 10-year Treasury yield, which has eased in recent weeks after reaching its highest level since 2002. The rise has added roughly $355 a month to payments on a $400,000 loan, and Fannie Mae projects the 30-year rate will average 7.4% in the fourth quarter and 7.5% in 2027.
- Average mortgage rate eases to 7 . 32 %, first pullback since late August
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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