Your weekly perch for all things real estate.

President Trump is prepping one of the biggest IPOs in history… for Fannie Mae and Freddie Mac. Yep, the same mortgage twins that Uncle Sam grounded back in 2008 are apparently getting their Wall Street comeback tour, complete with a possible $500 billion valuation and a backstage pass for the nation’s biggest banks.

NEST NUMBERS

WE’RE BAAAAAACK

Story: The Trump administration is teeing up an IPO for mortgage giants Fannie Mae and Freddie Mac that could raise roughly $30B and value the duo at a combined $500B or more. Officials are debating whether to take the companies public separately or as one, selling between 5% and 15% of their stock. The move would mark a dramatic step after the government placed them under conservatorship in the wake of the 2008 financial crisis. Shares in both spiked about 20% after news broke, though key questions remain, like whether they’d still be under government control post-offering. Big-bank CEOs have already made pilgrimages to D.C. to hash out details with Trump and top economic officials.

So What? For real estate investors and property managers, this isn’t just Wall Street gossip; it’s a potential tectonic shift in how mortgages are backed, sold, and priced. Fannie and Freddie are the backbone of America’s mortgage market, and any change to their structure, oversight, or cost of capital could ripple into interest rates, loan availability, and underwriting standards. An IPO this big could also inject new capital into the housing finance system, but it could come with changes in guarantees or risk appetite that investors will need to track closely.

What’s Next? Watch for official filings and announcements in the coming months, possibly before year’s end. The administration still has to decide the IPO structure, governance, and whether the companies will remain under conservatorship. Investors should monitor how Wall Street prices the offering, any policy strings attached, and how lenders react. The moment the S-1 hits the SEC, expect an avalanche of hot takes and trading activity.

Source: WSJ

NEST PICKS

Top Weekly Stories:

1️⃣ SFR/Multifamily: Multifamily developers are feeling (slightly) sunnier as confidence ticked up in Q2, with NAHB’s Multifamily Production Index rising to 46 and Occupancy Index hitting 82. 🪺 More

2️⃣ Insurance: If Southern California Edison is found responsible for January’s Eaton fire, payouts could wipe out California’s $21B wildfire fund (the state’s safety net for utility-related disasters). 🪺 More

3️⃣ Mortgages: Mortgage rates hit a four-month low at 6.63% as pressure mounts on the Fed to cut rates after weak jobs data and public dissent inside the central bank. 🪺 More

4️⃣ Interesting Trends: Market rents are cooling so quickly that CPI shelter costs could see the steepest deceleration in years through 2026, according to Zillow. 🪺 More

5️⃣ Policy Changes: Stephen Miran’s short-term appointment to the Fed might sway interest rate debates and even influence who chairs the Fed next. 🪺 More

INVESTOR HIGHLIGHTS:

👉 Podcast Highlight: From $1,000 to 500+ Rental Units: How Austin Hughes Built His Real Estate Empire

👉 Article Highlight: How to Evict a Squatter

👉 Off-Market Deal: Alabama Off-Market Deal