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Fannie Mae, Freddie Mac Shares Surge After Jump in Home Sales

Published: March 21, 2024 at 12:32 p.m. ET - By Will Feuer

Shares of Fannie Mae and Freddie Mac climbed to their highest levels in almost three years after the National Association of Realtors said U.S. home sales rose in February fromthe month prior.

Shares of Fannie Mae, officially known as the Federal National Mortgage Association, popped 8% to $1.95, on pace for its highest close since June of 2021.

Shares of Freddie Mac, officially known as Federal Home Loan Mortgage, rose more than 10% to $1.62, also on pace for its highest close since June of 2021.

Earlier Thursday, the NAR said sales of existing homes, the majority of purchases, surged 9.5% in February to a seasonally adjusted annual rate of 4.38 million.

Economists surveyed by The Wall Street Journal had estimated sales of previously
owned homes to fall 1.3% in February.

The monthly increase marked the first time in more than two years that sales increased for two consecutive months.

The forward momentum in sales over the last two months comes just ahead of the
spring selling season and follows one of the most sluggish periods for the housing
market in recent history. Home sales in 2023 fell to the lowest levels in nearly 30 years.

Since 2022, higher mortgage rates, high home prices and limited inventory have stifled sales, which were still down 3.3% from a year earlier in February.

Write to Will Feuer at [e-mail]

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