Federal National Mortgage Assctn Fnni Me FNMA 0.77% and Federal Home Loan Mortgage Corp FMCC 1.2% are making a huge bounce off of multi-week lows on Wednesday. Fannie Mae shares dipped as low as $3.41 on Wednesday morning, and Freddie Mac shares traded down to $3.27.

Fannie and Freddie’s big turnaround began roughly 20 minutes after the National Association of Realtors reported the highest level of U.S. home sales since the Financial Crisis.

Fannie jumped from a pre-election low of $1.61 to as high as $5.00 in early December on hopes that the Trump administration will eliminate the Treasury’s “net worth sweep” of Fannie and Freddie’s profits.

As it stands, Fannie and Freddie common shares are completely worthless unless shareholders get help from Trump or win ongoing court cases challenging the legality of the sweep.

Fannie and Freddie’s RSI peaked at around 90 during the early December buying frenzy, suggesting the two stocks were extremely overbought. In the past couple of weeks, their RSIs have dropped…

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