Fannie Mae and Freddie Mac extend post-election decline, falling about 25% over two days.

Fannie Mae and Freddie Mac common stock extended their post-midterm election decline, as the Democrats' landslide victory prompted investors to reassess the prospects of the two companies exiting government control. Ben Elliott wrote on Wednesday that "after Democrats swept both the Senate and House in the midterm elections, the options available to the Trump administration to free Fannie Mae and Freddie Mac from government conservatorship may be more constrained." He stated: "Any gradual, orderly exit from conservatorship is expected to face congressional hearings, subpoenas, and scrutiny over housing affordability." Fannie Mae fell as much as 15% intraday on Thursday, with its two-day cumulative decline widening to about 25%, the largest intraday drop since March; Freddie Mac also fell as much as 15% on Thursday, with a similar two-day cumulative decline. Fannie Mae and Freddie Mac have both fallen more than 60% year-to-date, as investors grow increasingly skeptical of the Trump administration's ability to push the two companies out of government control.