Fannie, Freddie Shares Soar as Trump Again Floats Privatization

A proposal by President Donald Trump to privatize Fannie Mae and Freddie Mac after almost two decades under government control has the mortgage companies’ stock prices leaping to their highest levels in 16 years.

Shares of Fannie soared 51% for their strongest performance since August 2009, while Freddie jumped 42% for its best day since September 2019. Both stocks saw very heavy volume, pushing them higher than they’ve been since the housing crash in 2008.

While investors are enthusiastic about the plan, it will be tricky to pull off. Trump floated the idea in his first term, with Treasury ...