Freddie Mac shares slumped by more than 8% in early trading after reports indicated the current administration may keep the company under government control rather than pursue an initial public offering. Market participants pointed to a White House proposal that would eliminate the statutory requirement for a share offering in favor of an ongoing conservatorship model. Analysts at Credit Suisse downgraded Freddie Mac from 'Outperform' to 'Neutral,' noting that sustained government oversight could limit dividend growth and strategic flexibility. The agency’s retained portfolio, now exceeding $1.5 trillion, would remain subject to federal capital draw requirements, potentially depressing returns for private investors over the next three fiscal years.

Freddie Mac’s January 15 Primary Mortgage Market Survey reported the 30-year fixed-rate mortgage at an average of 6.06%, down from 6.16% the previous week and significantly lower than the 7.04% recorded one year ago. The 15-year fixed-rate averaged 5.38%, an 8-basis-point decline from 5.46% and well below last January’s 6.27%. According to Chief Economist Sam Khater, weekly refinance applications jumped by 18% and purchase applications rose by 12% as borrowers rushed to lock in lower rates. With mortgage originations projected to exceed $2.3 trillion in 2026, Freddie Mac stands to benefit from enhanced fee income, although narrow spreads on government-guaranteed securities could constrain net interest margins.