What are Fannie Mae and Freddie Mac doing with mortgage-backed securities?

Fannie Mae and Freddie Mac have been significantly increasing the amount of mortgage-backed securities and home loans they hold on their balance sheets.

How much have Fannie Mae and Freddie Mac increased their portfolios?

Their combined retained portfolios grew by over 25% in five months, reaching $234 billion, the most since 2021.

Why are Fannie Mae and Freddie Mac increasing their holdings?

Speculation suggests they aim to lower lending rates and boost profitability, potentially ahead of a public offering.

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Fannie Mae & Freddie Mac Boost Holdings by Billions

15 Dec

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Summary

Fannie Mae and Freddie Mac increased retained portfolios significantly in five months.
Their combined holdings reached $234 billion, the highest since 2021.
Analysts predict an additional $100 billion in holdings next year.

Fannie Mae & Freddie Mac Boost Holdings by Billions

Government-backed housing finance giants Fannie Mae and Freddie Mac have significantly expanded their balance sheets in recent months.

Their retained portfolios, encompassing mortgage-backed securities and home loans they hold, grew by more than 25% over a five-month period ending in October. This expansion has propelled their combined holdings to $234 billion, marking the highest level observed since 2021.

This aggressive portfolio growth has ignited speculation among analysts, who suggest the entities may be attempting to depress lending rates and enhance their profitability, possibly in anticipation of a future public offering. Projections indicate that as much as an additional $100 billion could be added to their holdings in the coming year.