FNMA, FMCC Stocks Have ‘No Support Anywhere Near Here,’ Says Michael Burry: 'Clearly Fallen Into That News Desert'

‘The Big Short’ Investor Michael Burry said in a comment on Substack chat that Federal National Mortgage Association and Freddie Mac do not have support anywhere near current prices.

• According to Burry, FNMA may dip to around $3, where he thinks the stock might find technical support. 
• “Clearly FNMA and FMCC have slipped the minds of the Administration,” Burry said. 
• Both stocks are headed for a decline in September, with FNMA stock headed for its worst month this year, while FMCC is headed for its steepest monthly decline since January. 

"The Big Short" investor Michael Burry said Fannie Mae (FNMA) and Freddie Mac (FMCC) have lost the administration's attention amid the war with Iran.

“They've clearly fallen into that news desert I warned about,” he said, in response to a question in his comments section on Substack. 

“The decline is accelerating on fairly light volume. No support anywhere near here,” he said. 

Where Are FNMA, FMCC Stocks Headed?

FNMA stock is down 60% in 2026 and last closed at $4.40 on Monday. Meanwhile, FMCC stock has lost more than 61% of its value this year, closing last at $4.

According to Burry, FNMA may dip to around $3, where he thinks the stock might find technical support. 

“Clearly FNMA and FMCC have slipped the minds of the Administration. The Iran War marked a shift in attention, and now interest rates rising work against a re-focusing.”

Both stocks are headed for a decline in September, with FNMA stock headed for its worst month this year, while FMCC is headed for its steepest monthly decline since January. 

Analyst Take On FNMA, FMCC Stocks

Over the weekend, Keefe, Bruyette & Woods cut its price target on Fannie Mae by 44% to $3.50 from $6.25, and also lowered its Freddie Mac target to $3.50 from $6.50. 

The analyst said that while it still expects "robust earnings" from both companies, it is cautious on the common shares as it sees a growing likelihood that privatization will not happen.

In 2025, the Trump administration revived efforts to privatize Fannie Mae and Freddie Mac, aiming to end their government conservatorships by potentially raising capital through public share offerings, but it has yet to finalize a timeline. 

Keefe said that even if the privatization does go through, common shareholders would be diluted when the senior preferred shares held by the U.S. Treasury Department are converted to common stock. 

FNMA, FMCC Stocks: Retail Stance

On Stocktwits, retail sentiment around FNMA stock was ‘bearish’ at the time of writing. Meanwhile, retail sentiment around FMCC stock jumped from ‘bearish’ to ‘bullish’ territory over 24 hours. 

One user said, “$FNMA will be one the largest, if not, THE LARGEST, holders of $BTC in the housing finance business within the next 100 years!”

In March this year, Fannie Mae said it would start accepting crypto-backed mortgages through a partnership between Better Home & Finance and Coinbase, allowing homebuyers to leverage digital assets like Bitcoin without selling them. 

Another user said, “$FNMA $FMCC I sincerely hope Bill Ackman and Michael Burry sell their positions and move on.”

For updates and corrections, email newsroom[at]stocktwits[dot]com.<