CBO predicts $25 billion for Fannie, Freddie bailout

WASHINGTON (CNNMoney.com) - The Congressional Budget Office on Tuesday estimated that a government plan to stabilize mortgage giants Fannie Mae and Freddie Mac could cost government coffers an average of $25 billion.

CBO's estimate is an average based on "the path of housing prices in the next several months." Officials considered three scenarios: prices stabilize, grow modestly or decline steeply.

The CBO said it thinks there is probably a better than 50 percent chance that the Treasury would not need to step in. In addition, it said there is nearly a 5 percent chance that Freddie and Fannie's losses would cost the government $100 billion.