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Business
Analyst Cuts Targets for Fannie Mae, Freddie Mac as September Slump Looms
✍️ Asianet Newsable
🗓 28 Sep 2026, 09:01 AM
👁 14
Analysts have lowered their price targets for Fannie Mae and Freddie Mac, citing doubts over a planned privatization, and expect the two mortgage giants to post a weaker September performance as retail confidence wanes.
Analysts monitoring the U.S. mortgage market have reduced their price targets for government‑sponsored enterprises Fannie Mae (FNMA) and Freddie Mac (FMCC). The downgrade follows growing uncertainty about the U.S. Treasury’s plan to privatise the two entities, a move that many investors now view as delayed or unlikely.
The revised outlook predicts a slump in September earnings for both firms, with analysts pointing to weaker loan demand and tighter credit spreads. Retail investors, who have been buying shares of the GSEs as a hedge against housing market volatility, are reportedly losing confidence, further pressuring the stocks.
While the exact magnitude of the decline remains to be seen, the consensus among market watchers is that the combination of privatization doubts and eroding retail sentiment will weigh on the September performance of FNMA and FMCC.
The revised outlook predicts a slump in September earnings for both firms, with analysts pointing to weaker loan demand and tighter credit spreads. Retail investors, who have been buying shares of the GSEs as a hedge against housing market volatility, are reportedly losing confidence, further pressuring the stocks.
While the exact magnitude of the decline remains to be seen, the consensus among market watchers is that the combination of privatization doubts and eroding retail sentiment will weigh on the September performance of FNMA and FMCC.