Senate Democrats Warn: Fannie Mae and Freddie Mac IPO Plans May Push Up Mortgage Rates

Jinse Finance reported, citing The Wall Street Journal, that high mortgage rates have already deterred many potential homebuyers. Now, some Democrats are concerned that new measures from the Trump administration could further drive up rates. Massachusetts Senator Elizabeth Warren, New Jersey Senator Cory Booker, and New York Senator Chuck Schumer have jointly called on the Trump administration to suspend plans to sell shares of mortgage giants Fannie Mae and Freddie Mac, and have requested a study on how this move could potentially increase mortgage rates. On Friday morning local time, these senators sent a letter to Federal Housing Finance Agency Director William Pulte, urging him to focus on housing affordability issues rather than matters such as Federal Reserve building renovations or mortgage fraud allegations against Federal Reserve Governor Lisa Cook.