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Fannie Mae Surprises with Robust $3.3B Net Income in Q2 2025

Matt MonacoAvatar
Written by Matt Monaco
Updated 8/1/2025, 11:32 am ET | 5 min

In this article Last trade Aug, 01 12:56 PM

  • FNMA+9.10%
    FNMA - NYSEFederal National Mortgage Association
    $8.75+0.73 (+9.10%)
    Volume:  6.67M
    Float:  1.15B
    $8.51Day Low/High$9.37

Federal National Mortgage Association’s stocks have been trading up by 8.73 percent, driven by favorable mortgage market sentiment.

Candlestick Chart

Live Update At 11:32:20 EST: On Friday, August 01, 2025 Federal National Mortgage Association stock [NASDAQ: FNMA] is trending up by 8.73%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Quick Financial Overview

Fannie Mae has reported a significant boost in net income, reaching $3.3B for the second quarter of 2025. This demonstrates a robust financial performance, especially when compared to previous periods. Delving into the numbers, FNMA’s total revenue stood at $74.44B, a towering figure that reflects a consistent evolution in their financial stature.

Reviewing the company’s key financial metrics reveals intriguing insights. The pre-tax profit margin landed at a solid 72.8%. Meanwhile, the revenue per share was pegged at $26.64 despite a challenging backdrop. Observing the asset turnover ratios, it becomes evident that the company’s strategic direction has been both deliberate and well-calculated.

Delving into the movements of FNMA’s stock, a curious pattern emerges. At the month’s end, the opening price on Jul 31, 2025 hit $8.55, whereas by Aug 1, it reached $9.14. The financial gravity pulling FNMA’s shares upward can be linked to the announced income figures and optimistic insights shared during corporate discussions.

Furthermore, the noteworthy mention of FNMA’s revenue 3-year decline at (-9.46%) and a small decline over 5 years (-1.02%) poses interesting challenges. The tangible shifts in metrics like the price to sales ratio stand at 0.44 and price to book at 0.11, subtly hinting at FNMA’s current market position and investor sentiment.

Home Prices and Mortgage Rates Evolve

Grasping the intricate dance of mortgage rates and housing prices reveals an evolving narrative. FNMA announced its revised expectations for home price growth and mortgage rates for 2025 and 2026. The anticipated home price growth is now estimated at 2.8% in 2025 and 1.1% in 2026. These figures are slightly tempered compared to past forecasts, which can trigger both investor curiosity and cautious market recalibrations.

More Breaking News

The mortgage arena bears implications as FNMA predicts rates might hold steady at 6.4% by the end of 2025, easing to 6.0% by the following year. Such projections echo the company’s vast data analysis efforts aiming to measure the pulse of economic trends. The implications here stretch far and wide, impacting potential homebuyers along with institutional strategies.

Influences on Market Dynamics

The hum of FNMA’s financial market dynamics never ceases as investor focus toggles back and forth. As FNMA revealed a decrease in its Home Purchase Sentiment Index (HPSI) for June 2025, the lowered consumer sentiment points to cautious behavior among prospective home buyers. The index fell 3.7 points month-over-month to 69.8, shrinking further year-over-year by 2.8 points.

Navigating these realities obliges stakeholders to rethink strategies and anticipate lighter demand pressures. The ripple effects stretch into considerations of how such changes might inform the overall real estate corridor.

Conclusion

Fannie Mae’s recent performance offers rich insights into the inner workings of the financial ecosystem. As we digest the impressive Q2 earnings, upcoming earnings announcements, and evolving macroeconomic forecasts, each piece of the puzzle takes on added significance.

For FNMA, a watchful eye on developing financial currents, consumer engagement, and market behavior remains vital. As millionaire penny stock trader and teacher Tim Sykes says, “It’s better to go home at zero than to go home in the red.” This trading philosophy underlines the importance of cautious strategies and avoiding unnecessary losses, which is critical as FNMA navigates current uncertainties and promising shifts in market conditions. Success lies in proactive adaptability and keen scrutiny of both. From here, the unfolding chapters of FNMA’s trajectory shall continue to be written, each adding its splash of color to the intricate financial landscape.

This is stock news, not investment advice. Timothy Sykes News delivers real-time stock market news focused on key catalysts driving short-term price movements. Our content is tailored for active traders and investors seeking to capitalize on rapid price fluctuations, particularly in volatile sectors like penny stocks. Readers come to us for detailed coverage on earnings reports, mergers, FDA approvals, new contracts, and unusual trading volumes that can trigger significant short-term price action. Some users utilize our news to explain sudden stock movements, while others rely on it for diligent research into potential investment opportunities.

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Matt Monaco

Mentor and Trainer at StocksToTrade.com, Lead Mentor at Small Cap Rockets and To The Moon Report
He is a diligent trader and teacher in his To The Moon Report blogs and Small Cap Rockets strategy webinars. He shows up every day, and expects his students to as well. Matt is fond of trading sketchy, volatile OTC stocks with profit potential. His favorite patterns are panic dip buys and breakouts.
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* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”

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