• The odds of reprivatisation of Fannie Mae and Freddie Mac increased the company's shares.

• But the move to release them from government control could hurt the mortgage market, Pimco warned.

This year, a Trump trade under Trump rule has surged major changes to the mortgage industry, but that may ultimately not benefit everyday Americans.

According to PIMCO, PIMCO said this week that the privatization of Fannie Mae and Freddie Mac was a mortgage financing giant that was taken over by the government after the 2008 housing crash, which could benefit shareholders but could increase the cost of borrowers.

"If the protection is rushed out of protection and some issues are not addressed, especially because they are related to government guarantees related to GSEs entering protection during the 2008 global financial crisis - many Americans may unconsciously face higher mortgage rates."

Discussions about reforming government-sponsored businesses have been rekindled during Trump’s second term. The president failed to release the company from protection during his first term, but encouraged investors may be different this time.

Fannie Mae and Freddie Mac have soared since the November election, with ages increasing by 138% and 92% respectively. Pimco suggests that ending 16 years of protection could produce greater performance beyond performance.

However, Pimcoe said there would be a lot of risks if the options for re-privatising Fannie and Freddie Mac are not considered.

After all, these GSEs have evolved into the basic gear of the mortgage industry, accounting for 70% of the market. By purchasing mortgages and packaging them into bonds, these two institutions are an important source of liquidity in the U.S. housing market.

Thanks to the restrictions and controls established by policy makers, GSE has become significantly less impacted by government supervision. If these institutions are privatized, that could weaken, making mortgage lending more risky and potentially cutting liquidity.

"The potential expansion of mortgage spreads and the increase in major mortgage rates may have a negative impact on investors and consumers," JPMorgan wrote in January. "The uncertainty of government support after privatization could lead to higher and greater volatile borrowing costs, exacerbating the current housing affordability challenge."

The last thing home buyers want to deal with in today’s market. Although prices remained higher, mortgage rates for 30 years were also high compared to ultra-low interest rates in the years since the financial crisis.