By John Meyer, consultant in financial affairs – Eurasia Business News, August 8, 2025. Article no. 1693

Stocks of Fannie Mae and Freddie Mac recently jumped about 20% following reports that the Trump administration is preparing to sell stock in these government-controlled mortgage giants through an initial public offering (IPO) planned for later this year.

Fannie Mae stock recently traded near $9.80 per share, up over 18%, and Freddie Mac stock traded near $7.99 per share, also with a roughly 21% gain on the day. The IPO plan includes selling 5% to 15% of their stock, although it is still uncertain whether they will be offered as a single company or separate entities, and whether the firms will remain under government conservatorship after the sale.

This move could raise around $30 billion and is seen as a major step toward privatizing the companies, which have been under federal conservatorship since the 2008 financial crisis. Fannie Mae’s shares surged roughly 20%, while Freddie Mac’s rose close to 19-21%, reflecting strong market enthusiasm for this IPO prospect.

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The combined valuation of the two companies is estimated at approximately $500 billion or more, with plans to sell between 5% and 15% of their stock either as one entity or as separate companies. This development has led to a sharp rally in their shares, driven by anticipation of the privatization and potential market impact.

U.S. house prices fell 0.2 percent in May, according to the U.S. Federal Housing (FHFA) seasonally adjusted monthly House Price Index (FHFA HPI®). House prices rose 2.8 percent from May 2024 to May 2025. The previously reported 0.4 percent price decline in April was revised to a 0.3 percent decline.

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© Copyright 2025 – Eurasia Business News. Article no. 1693