FHFA Finalizes Housing Goals for Fannie Mae and Freddie Mac for 2025-2027

The Federal Housing Finance Agency (FHFA) has finalized the housing goals for Fannie Mae and Freddie Mac for the 2025-2027 period. Let’s break it down and see what this means for the housing market.

Affordable Housing Goals

The new goals require Fannie Mae and Freddie Mac to purchase a certain percentage of mortgages that serve low-income and very low-income families. Essentially, this means they need to focus on making homeownership more accessible to those who might otherwise struggle to afford it. This is a crucial step in addressing the ongoing affordable housing crisis.

Specific Targets

For the 2025-2027 period, the goals are as follows:

• Low-income families (those earning 80% or less of the area median income): 28% of all purchases
• Very low-income families (those earning 50% or less of the area median income): 8% of all purchases
• Low-income areas (census tracts with median income at or below 80% of the area median income): 14% of all purchases

These targets are designed to ensure that Fannie Mae and Freddie Mac are actively supporting affordable housing initiatives and making homeownership more attainable for underserved communities.

Potential Impact

The new housing goals are expected to have a positive impact on the housing market, particularly for low-income and very low-income families. By increasing the focus on affordable housing, the FHFA aims to address the growing affordability challenges that many Americans face when trying to purchase a home. This could lead to more opportunities for first-time homebuyers and those who have traditionally been excluded from the housing market.