Privatization may raise mortgage rates for home buyers

Fannie Mae and Freddie Mac are important figures in the U.S. housing market. They help stabilize home buying and support mortgage loans. Recently, William Pulte, appointed by former President Trump, took charge of the agency that oversees these companies. He has made significant changes, including replacing top executives. Pulte plans to end programs that assist first-time home buyers with down payments and closing costs. This shift comes as discussions about privatizing Fannie Mae and Freddie Mac heat up. These companies have been under government control since the 2008 financial crisis. If Fannie Mae and Freddie Mac go private, investors could benefit greatly. However, home buyers may face higher costs. Experts predict that mortgage rates will increase as a result. This could make purchasing a home more challenging during an ongoing affordability crisis.