Will Privatizing Fannie Mae And Freddie Mac Mean Higher Mortgage Rates?

Fannie Mae and Freddie Mac provide liquidity and support for the U.S. mortgage market. For the past 16 years, the two enterprises have been subject to close supervision by the federal government. The arrangement, also known as ‘conservatorship,’ was established in 2008 after the collapse of the housing market. Conservatorship has, at times, restricted Fannie and Freddie’s ability to raise capital. With President Trump’s second term underway, some prominent voices are calling for Fannie and Freddie’s return to private markets. The move could potentially impact the rates offered for new mortgages in the U.S.. Chapters: 0:00 Intro 01:26 Chapter 1: Fannie & Freddie 05:22 Chapter 2: Conservatorship 07:57 Chapter 3: What happens next? 09:03 Chapter 4: Implications for the housing market Correspondent: Diana Olick Producer by: Carlos Waters Edited by: Andrea Miller Camera: Van Appelgate Senior Producer: Shawn Baldwin Graphics: Jason Reginato Additional Footage: Getty Images, Yahoo! Finance Additional Sources: Cato Institute, Congressional Budget Office, Federal Housing Finance Agency, Mortgage News Daily, S&P Global, Realtor.com