Fannie Mae and Freddie Mac must now lend more to low-income families
What happened
The Federal Housing Finance Agency has set new lending targets for Fannie Mae and Freddie Mac for 2025 through 2027. These government-backed mortgage companies must now buy more mortgages from low-income borrowers and underserved communities.
Why it matters
These new targets mean Fannie Mae and Freddie Mac will direct more money into specific housing markets. This could make it easier for low-income families to get mortgages, especially in areas that have historically struggled to attract investment. It also means more capital will flow into affordable housing projects.
The signal
Watch for changes in mortgage availability and interest rates for low-income borrowers in 2025, and whether the number of affordable housing units financed by these companies increases.