Why Did Fannie Mae and Freddie Mac Plunge This Week?

The stock market has been having a very strong week, with the S&P 500 sitting at an all-time high. As of 1 p.m. EDT on Thursday, Fannie and Freddie had declined by 38% and 41%, respectively, since Monday's open. The big catalyst for this week's move is Wednesday's Supreme Court decision that makes the Federal Housing Finance Agency (FHFA) far more accountable to the president and makes it much easier for the White House to replace the head of the FHFA, which is exactly what it just did with Trump-appointed director Mark Calabria.