Bloomberg News reported Thursday that Fannie Mae (FNMA) and Freddie Mac (FMCC) face increased interest-rate risk. Expanding investment portfolios have widened duration gaps, increasing vulnerability to rate fluctuations.
Freddie Mac’s duration gap averaged 12 months in April 2026. This figure rose from two months during the same period one year earlier.
The widening gap exposes approximately $1.7 billion of Freddie Mac’s portfolio to potential losses. The companies added over $135 billion to their retained portfolios to help lower housing costs.