Fannie, Freddie jump in pre-market trading

Shares of the mortgage finance giants climb after Senate approves housing rescue bill.

By Aaron Smith, CNNMoney.com
July 28, 2008

NEW YORK (CNNMoney.com) - The battered stocks for Fannie Mae and Freddie Mac climbed in pre-market trading Monday, lifted by a housing rescue plan the Senate passed over the weekend.

Fannie (FNM, Fortune 500) and Freddie (FRE, Fortune 500) were each up at least 8% in pre-market trading.

The Senate approved a bill on Saturday that could establish a rescue plan for the two mortgage giants and provide up to $300 billion in loans for troubled homeowners.

The House passed the bill on Wednesday, and President Bush is expected to sign it soon.

The stock prices for Fannie and Freddie have fallen more than 40% in July. The companies, which together own or back about half the nation's mortgage debt, have been hard-hit by the imploding housing market.

On Friday, Standard & Poor's put some of Fannie and Freddie's ratings on watch for possible downgrade.

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