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

» Subscribe to CNBC: https://cnb.cx/SubscribeCNBC
» Subscribe to CNBC TV: https://cnb.cx/SubscribeCNBCtelevision

About CNBC: From ‘Wall Street’ to ‘Main Street’ to award winning original documentaries and Reality TV series, CNBC has you covered. Experience special sneak peeks of your favorite shows, exclusive video and more.

Want to up your AI skills and be more productive? Take CNBC’s new online course on “How to use AI to be More Successful at Work" to leverage AI at work, and in life. Sign up now: https://cnb.cx/40jZlNX

Connect with CNBC News Online
Get the latest news: https://www.cnbc.com/
Follow CNBC on LinkedIn: https://cnb.cx/LinkedInCNBC
Follow CNBC News on Instagram: https://cnb.cx/InstagramCNBC
Follow CNBC News on Facebook: https://cnb.cx/LikeCNBC
Follow CNBC on Threads: https://cnb.cx/threads
Follow CNBC News on X: https://cnb.cx/FollowCNBC
Follow CNBC on WhatsApp: https://cnb.cx/WhatsAppCNBC