Freddie Mac shares tumbled 4.2% on January 14 after reports surfaced that the administration intends to maintain the company under federal conservatorship rather than move forward with an initial public offering. Since late December, FMCC has declined 9.7%, reflecting investor concern that the company may face tighter oversight and curtailed capital distributions. Market analysts note that if the Federal Housing Finance Agency extends conservatorship beyond 2026, Freddie Mac could be restricted from rebuilding its capital buffers, potentially limiting its ability to support new mortgage originations and affecting dividend policies for common shareholders.

In its January 15 Primary Mortgage Market Survey, Freddie Mac disclosed that the average 30-year fixed-rate mortgage fell to 6.06%, down from 6.16% the previous week and well below last year’s 7.04% average. The 15-year fixed-rate mortgage also eased to 5.38% from 5.46% a week earlier and compared with 6.27% a year ago. Chief Economist Sam Khater highlighted that weekly purchase applications rose by 3.5% and refinance requests jumped 8.1% in the wake of the rate drop, signaling renewed homebuying activity and positioning the spring sales season for stronger volume. Freddie Mac emphasized that its conforming loan survey reflects loans for borrowers with 20% down payments and excellent credit profiles.