New housing inventory and Buffett's Q2 2023 bet on US Homebuilders is just the lead up to the warmer 2024 weather home builders biggest new housing production since the 2006-08 peak of inventory imo. The fannie and freddie re-privatization has this stock currently on the slow run back up from the Q3 2008 bottom last year and no doubt, a private FnF ($FNMA all in since it does the majority of the 70% of mortgage offloading via purchases from mortgage originators) will follow and I have reason to believe if you're long here - you will enjoy the housing boom. It is such a critical "duopoly" and is coming at the perfect time given macroeconomic and geopolitical situations favoring the need for it. I think folks just forgot or are naive to how important and irreplaceable the privatized FnF is to a booming US newly built housing inventory and the expansion and pace of successful mortgage origination and profits from foreign appetite and domestic institutional investment into the unleashed homebuilders boom and FnF privatized capability to sustain growth for DECADES going forward in that market. I love it. Who wants it more than anyone? Our nations private sector, banks, wall street, both sides of the aisle in DC, AND ... the CEO of Fannie Mae herself as of Jan 19, 2024 in Bloomberg Law. Give it another few months, I bet Joe Biden pulls it off because he has no other choice. Then again a lot of under the radar moves made by the admin Biden was VP during (listing CEDEARS with FHFA approval since 2011 for FNMA and FMCC in Buenos Aires Stock Exchange hmmm) are also why this is not a political partisan issue in the end - it's what the street and institutions that back these politicos in both parties have wanted all along. To offload their mortgage origination when the new homebuilding boom finally comes so they can lend/lend/lend while profiting from the sales of Mortgages to FnF ;). LFG.
Bullish
