Freddie Mac (OTCQB: FMCC) shares fell 9.5% over the past week after President Trump’s administration signaled it may keep the company under conservatorship rather than proceed with an initial public offering. The retreat accelerated following a January 12 briefing in which senior Treasury officials suggested that proposed bond-issuance reforms would strengthen federal oversight and limit private-market participation. Trading volume surged 40% above the ten-day average as institutional investors reallocated capital away from agency mortgage lenders.

In its January 15 Primary Mortgage Market Survey®, Freddie Mac reported the 30-year fixed-rate mortgage averaged 6.06%, down from 6.16% the prior week and 7.04% a year ago. The 15-year fixed-rate loan averaged 5.38%, versus 5.46% last week and 6.27% in January 2025. This marks the lowest weekly average for the 30-year FRM since November 2022, reflecting easing Treasury yields and moderated inflation readings.

Freddie Mac’s Chief Economist Sam Khater noted that lower rates drove a 11% increase in purchase applications and a 14% jump in refinance requests during the week ending January 15. Mortgage Bankers Association data corroborate the surge, with total application volume rising to its highest level since April 2023. Improved affordability is expected to underpin a 5% to 7% expansion in home sales this spring, according to agency forecasting models.

Reduced mortgage rates and rising loan originations support Freddie Mac’s guarantee fee revenue, which grew 8% year-over-year in Q4 2025. However, prolonged conservatorship weighs on equity valuation: FMCC’s price-to-book ratio contracted to 0.75x, down from 0.92x at the start of December. Investors will watch Treasury’s bond reform proposals and the outcome of congressional hearings on housing finance for signs of a potential exit strategy or dividend policy changes.