<p>Fannie/Freddie doesn’t make prices higher provided they make loans in the correct way. Fannie/Freddie have been in existence since the Great Deal while the bubble was a recent thing because they were overzealous in buying loans that the primary market approved easily. Try to distinguish the subtle differences before making blanket and oversimplified statements like you just did. Don’t pretend you are some expert economist when you clearly aren’t.</p>