The government-sponsored mortgage giants have been in a conservatorship for over 15 years, but traders are laying bets they'll soon be reprivatized.

Housing observers see an opportunity to fundamentally remake a system to close the gap on serving historically marginalized communities.

The U.S. government may soon return Fannie Mae and Freddie Mac to private markets less than two decades after turmoil nearly toppled the mortgage industry.

The potential impacts of import tariffs cloud the outlook, though, and could lead mortgage rates to surge and fall throughout the coming year.

These are today's mortgage and refinance rates. Mortgage rates may not drop as much as expected this year, hurting affordability.

Fannie Mae and Freddie Mac support the U.S. mortgage market. The two were placed into a strict form of government oversight called "conservatorship" in 2008 as the global financial crisis mounted. This has at times limited Fannie's and Freddie's ability to raise capital.

Many experts say privatizing Freddie Mac and Fannie Mae could significantly alter the mortgage market. Fannie Mae and Freddie Mac help keep the mortgage market stable by buying home loans, selling mortgage-backed securities and establishing lending guidelines.

Fannie Mae showed a strong 22% year-over-year increase in net worth according to an earnings report released Friday. The company claims a net worth of $94.7 billion as of the end of last year, up from $77.

"However, in practice, most cases of VA loans usually only involve two persons: one veteran and a spouse," says Alexei Morgado, a Realtor and founder of Lexawise, a real estate exam preparation course. "Adding additional persons to a VA loan can complicate factors, particularly in regards to occupancy and entitlement computation."

Current risks to Fannie Mae's outlook are higher than normal due to uncertainty around trade policy, including additional tariff proposals.

Fannie Mae (FNMA) presents a significant opportunity, especially if privatized, with potential stock value reaching $31-$34 per share, supported by