Fannie and Freddie Earmark Funds for Expected Housing Market Deterioration

Fannie Mae interim CEO David Benson announced November 8 that Fannie Mae is anticipating declines in home values to reach 1.9% for the second half of 2022 and 1.5% in 2023. Additionally, in anticipation of the home value declines both Fannie Mae and Freddie have set aside $2.5 billion and $1.8 billion, respectively, of credit loss builds to weather the current tumultuous mortgage market and the “lower observed and forecasted house price appreciation.”

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