rump’s Potential Push for Fannie Mae and Freddie Mac Privatization Could Impact Mortgage Rates

The privatization of Fannie Mae and Freddie Mac, key players in the U.S. mortgage market, may raise mortgage rates, particularly for lower-income borrowers, as government backing would be removed. These companies currently help keep rates low by buying mortgages from lenders.

Mortgage rates have already experienced volatility due to Federal Reserve policies and Trump-era tariffs, and privatization could further destabilize the housing market, potentially increasing borrowing costs—something politicians aim to avoid.