Fannie, Freddie shares go higher on renewed confidence

NEW YORK (CNNMoney.com) - Reports of the deaths of Fannie Mae and Freddie Mac may have been greatly exaggerated.

Shares of the battered mortgage giants soared Thursday morning. Freddie Mac surged more than 30 percent in the first hour of trading and Fannie Mae jumped about 27 percent, coming off their slump from prior trading sessions.

Also on Thursday, Fitch Ratings affirmed 'AAA' long-term issuer default ratings for Fannie and Freddie. But Fitch also chopped Fannie's preferred stock rating and put Freddie on watch for possible downgrade.

–By CNNMoney.com's Aaron Smith