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Fannie Mae & Freddie Mac Bite The Dust!!

By
Real Estate Agent with Green Street Realty

In an announcement made today by Treasury Secretary Henry Paulson the Federal Government has taken over mortgage giants Fannie Mae and Freddie Mac. Both companies have been placed into a government conservatorship under the recently created Federal Housing Finance Agency, under a plan announced by the Treasury Secretary and FHFA Director Jim Lockhart. So what does this mean to me and you, that's yet to be seen. Some people think mortgage rates will rise dramatically and others think 5% again. I for one hope lower rates are the order of the day. I feel if rates drop further many buyers will get off the sidelines and get some of the best housing deals in the last 5 years. With high inventory and the peak purchase season over sellers are between a rock and a hard place!! Keep your eye on the news and feel free to contact me with any questions I'm always here to help!!

 

Aaron Gallagher

Comments (1)

Anonymous
Charles Schultz

Is forecasting whether rates will up or down really that variable? Obviously, I know nothing about the market, but it just seems to me that someone would know, or at least have an inkling of an idea. Afterall, someone has to make a decision that directly affects the rate one way or another. Who (as in, which group of people) makes that decision?

Sep 08, 2008 02:34 AM
#1