Freddie Mac shares have dropped sharply in early trading this month, with FMCC stock falling 7.8% between January 5 and January 12 as investors reacted to the administration’s indication that the company may remain under government conservatorship rather than pursue a public offering. Analysts at Raymond James revised their 2026 earnings per share forecast for Freddie Mac downward by 12%, citing continued political uncertainty and the potential for tighter mortgage bond issuance guidelines under the White House plan. Trading volume on January 12 exceeded the 30-day average by 45%, highlighting elevated investor anxiety over the timing and structure of any exit from federal control.

Freddie Mac’s Primary Mortgage Market Survey revealed that the 30-year fixed-rate mortgage averaged 6.06% for the week ending January 15, down from 6.16% the previous week and 7.04% a year earlier. The 15-year fixed rate fell to 5.38%, from 5.46% last week and 6.27% in January 2025. According to Freddie Mac Chief Economist Sam Khater, the drop in borrowing costs drove a 16% increase in purchase applications and a 20% jump in refinancing requests over the same period. This surge in mortgage demand suggests renewed housing market momentum, setting the stage for what Khater projects will be a “solid spring sales season” and further supporting Freddie Mac’s mission to enhance market liquidity and affordability.