Walker & Dunlop CEO Willy Walker discussed the future of Fannie Mae and Freddie Mac at the Zelman Housing Summit, as reported on October 2, 2025. Walker expressed concerns about the state of affairs for the Government-Sponsored Enterprises (GSEs), particularly given recent reports of arguments between FHFA Director Bill Pulte and Treasury Secretary Scott Bessent regarding their privatization.
Walker emphasized the need for clarity on who decides the fate of Fannie and Freddie, likening the situation to WeWork's lack of a strong independent board. He noted that while commercial real estate broadly suffered in the past three years due to higher interest rates, the multifamily sector had an advantage because Fannie and Freddie consistently provided liquidity when other lenders might not have.
Regarding interest rates, Walker stated he was surprised by the 4.01% yield on the 10-year Treasury at the time of the conference, expecting rates to be higher. He anticipates at least a 50-basis point cut in the short end of the curve but does not expect it to significantly impact long-term interest rates, based on historical patterns outside of recessionary environments.
Other concerns raised at the conference included a 'land crisis' and a shortage of labor for construction, with calls for policies similar to a 'CHIPS Act for housing' and healthy immigration policies to address worker shortages.
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