WASHINGTON - A leading securities analyst is predicting that mortgage spreads at Fannie Mae and Freddie Mac are in a long-term decline that will depress their earnings growth. He has downgraded the stocks to "market perform."

Though business is booming now, analyst Jonathan Gray of Sanford C. Bernstein & Co. believes the longer-term outlook is more mixed.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.