Fannie, Freddie Quietly Add Billions to Mortgage-Bond Portfolios

Fannie Mae and Freddie Mac have added billions of dollars of mortgage-backed securities and home loans to their balance sheets in recent months, fueling speculation that they’re trying to push down lending rates and boost their profitability ahead of a potential public offering.

The government-backed housing-finance giants increased their retained portfolios — the portion of bonds and loans they hold onto rather than sell to investors — by more than 25% in the five months through October, according to the latest figures. That’s lifted their combined positions to $234 billion, the most since 2021. Analysts estimate they could add as much as $100 billion more next year.