William Pulte, Director of the Federal Housing Finance Agency (FHFA) recently appeared on the Fox Business program, “The Claman Countdown,” discussing news of the privatization of Fannie Mae and Freddie Mac, and the ripple effect this news had had on the financial markets.
Hosted by Liz Claman, “The Claman Countdown” airs the final hour before the final bell of the Stock Exchange, and examines the day’s stock activity and its impact on the overall finance market.
Discussing the rise in stock prices since news of the privatization of Fannie and Freddie began to pick up steam, Claman stated, “Freddie Mac is up 46 or so percent since May 19, while Fannie Mae is up 58% over the same time span. The stocks have shot up as President Trump pushes the idea of privatizing the two firms.”
Fannie Mae and Freddie Mac help provide stability and affordability to America’s home mortgage market, and the National Association of Realtors (NAR) reports that Fannie and Freddie support approximately 70% of the U.S. mortgage market.
In 2008, the FHFA exercised statutory authority to place Fannie Mae and Freddie Mac into conservatorship at the height of the sub-prime mortgage crisis, which triggered the subsequent Great Recession. This move, originally intended as a temporary move, established the two conservatorships in response to a deterioration in the nation’s housing market that damaged the financial condition of each, and left both of them unable to fulfill their missions without government intervention.
On May 27, President Trump took to social media and stated: “Our great Mortgage Agencies, Fannie Mae and Freddie Mac, provide a vital service to our Nation by helping hardworking Americans reach the American Dream—Home Ownership. I am working on TAKING THESE AMAZING COMPANIES PUBLIC, but I want to be clear, the U.S. Government will keep its implicit GUARANTEES, and I will stay strong in my position on overseeing them as President. These Agencies are now doing very well, and will help us to, MAKE AMERICA GREAT AGAIN!”
Pulte explained, “At Fannie Mae and Freddie Mac, we have $7.8 trillion in these companies … these companies are immensely valuable, and we are finally turning these companies around in getting them to be good, healthy, stable companies for the benefit of the American people.”
Much of the concern about taking Fannie and Freddie public involves what is known as an “implicit guarantee” that the two had on mortgage loans—the market’s assumption that if something went wrong, the government would intervene and bail them out.
“A lot of other presidents, as you know, haven’t really focused on these two entities,” added Pulte. “It’s kind of crazy, to be honest with you, but President Trump, he just kind of finds money wherever it is, and in this case, he found at Fannie Mae and Freddie Mac … we have $7.8 trillion in these companies. There’s no President other than President Donald J. Trump who understands more about mortgage rates, the housing market construction … Fannie Mae and Freddie Mac could be way stronger in his hands, frankly, than anybody else’s hands.”
When questioned about the direct privatization structure, and if the process would need Congressional approval, Pulte noted, “President Trump’s tweet didn’t mention privatization. What he stated was that he was looking at potentially going public, and as you know, there are a bunch of different opportunities there.”
And as talk grows of bringing these companies public, the bottom line is the impact on mortgage rates and how such a deal will impact the rate environment. According to Freddie Mac, the 30-year FRM averaged 6.89% as of May 29, 2025, up from the previous week when it averaged 6.86%. A year ago at this time, the 30-year FRM averaged 7.03%.
“I think that the mortgage market will be safer and sounder as a result of any option that the President takes,” explained Pulte. “And I’m very confident in his judgment and in his ability to understand what that would mean for mortgage rates and interest rates.”
Pulte took another opportunity during his appearance on “The Claman Countdown” to pressure Federal Reserve Chair Jerome Powell to decrease the federal funds rate.
“I would say one thing, which is the interest rates must be cut,” said Pulte. “Jerome Powell has to lower interest rates. Inflation was way higher the last time he cut. We need this in the housing market, and I urge Jerome Powell to cut interest rates quickly.”
Just last week, Pulte took to the social media channel X to call for a reduction in the federal interest rate.
“Jay Powell needs to lower interest rates—enough is enough. President Trump has crushed Biden’s inflation, and there is no reason not to lower rates. The housing market would be in much better shape if Chairman Powell does this,” said Pulte in his post on X.
Late last week, Powell met with President Trump at the White House to discuss the state of the nation’s economy, employment, and inflation.
“The President did say that he believes the Fed Chair is making a mistake by not lowering interest rates, which is putting us at an economic disadvantage to China and other countries,” White House Press Secretary Karoline Leavitt said in a post-meeting press briefing. “The President’s been very vocal about that, both publicly and now I can reveal privately as well.”
Norbert Michel, VP and Director of the Center for Monetary and Financial Alternatives for public policy research organization the Cato Institute, recently commented on the sale of Fannie and Freddie, commenting, “The U.S. mortgage market should not include government-sponsored enterprises because private firms can purchase and securitize mortgages without a federal guarantee. Private profits should not be paired with the socialization of losses. Anything short of eliminating government sponsorship for these firms would leave in place the same system that led to the 2008 financial crisis.”
Michel, author of a December 2024 piece titled “The Proper Way to End the GSE Experiment,” highlighted the hurdles that both Fannie and Freddie could face being released from government conservatorship.
Click here for more on FHFA Director Pulte’s appearance on “The Claman Countdown.”
