Fannie Mae and Freddie Mac have quietly added billions of dollars in mortgage-backed securities and home loans to their balance sheets in recent months, triggering speculation that they are trying to lower loan interest rates and increase profitability ahead of a potential IPO. The two government-backed housing finance giants have increased their reserved portfolios by more than 25%, according to the latest data. This brought their total holdings to $234 billion, the highest level since 2021. Analysts estimate they could add another $100 billion next year. Although Trump administration officials have been tight-lipped about the purchase of mortgage-backed securities, they have said many times this year that they will use the financial strength of Fannie Mae and Freddie Mac to reduce housing costs. Policymakers have also been paving the way for the two companies to return to the open market after being taken over for nearly two decades, and a larger holding portfolio could boost earnings and make them more attractive to investors in any future offering.

Fannie Mae and Freddie Mac have quietly added billions of dollars in mortgage-backed securities and home loans to their balance sheets in recent months, triggering speculation that they are trying to lower loan interest rates and increase profitability ahead of a potential IPO. The two government-backed housing finance giants have increased their reserved portfolios by more than 25%, according to the latest data. This brought their total holdings to $234 billion, the highest level since 2021. Analysts estimate they could add another $100 billion next year. Although Trump administration officials have been tight-lipped about the purchase of mortgage-backed securities, they have said many times this year that they will use the financial strength of Fannie Mae and Freddie Mac to reduce housing costs. Policymakers have also been paving the way for the two companies to return to the open market after being taken over for nearly two decades, and a larger holding portfolio could boost earnings and make them more attractive to investors in any future offering.