The Fox News Rundown Business Rundown: The President's Plan To Get Homebuyers Buying Again
Oct 10, 2025
Douglas Holtz-Eakin, an economist and former director of the Congressional Budget Office, shares insights on the troubled housing market. He discusses the challenges facing Fannie Mae and Freddie Mac, including their ongoing conservatorship. The potential privatization plan proposed by President Trump and its implications for homebuilding are explored. Holtz-Eakin emphasizes the need for zoning reform and lower real rates to invigorate housing, while advising caution against hastily pushing unready buyers into homeownership.
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Halfway House Needs A Plan
- Fannie Mae and Freddie Mac have lived in a "halfway house" under Treasury backstop since 2008 and need a clear future role.
- Douglas Holtz-Eakin says returning them to the private sector requires cleaning up capital structure and careful planning.
Don't Rush Privatization
- Do not rush an IPO or release from conservatorship; proper capitalization matters.
- Holtz-Eakin warns releasing them prematurely would be a mistake and they need more capital.
Privatization Brings Messy Tradeoffs
- Exiting government ownership inevitably involves picking favorites and messy choices about IPO management.
- Holtz-Eakin notes breaking them up or choosing underwriters creates trade-offs and shareholder impacts.