Investors Dump Fannie Mae & Freddie Mac

Today on Wall Street, "Investors dumped the stocks of Fannie Mae and Freddie Mac on Monday after Barron's reported the increasing likelihood of a U.S. Treasury bailout that would approach nationalization of the two housing finance titans." 

Freddie Mac and Fannie Mae have recently indicated that they do see challenging housing and lending markets for the near future and some further decline in pricing. 

However, today at least, investors seem to see a continued downturn in housing and lending was factored into the market by Wall Street (and Main Street )and possibly there may be moer Treasury involvement before a Real Estate  correction is near .

Since, my crystal ball works as well as you might expect, I don't know exactly what the next 6 - 12 months hold.

However, home prices are down nearly 20%+, some more than 30% in many areas of greater Phoenix. Some areas, where there was a lot of new home building like Queen Creek and North Phoenix, are down more.

Some towns like Paradise Valley, Scottsdale and the golf communtiy of SilverLeaf in DC Ranch are not as affected)

Many buyers are owning homes 30% less than they could have owned the same home just years ago. Mortgage rates are at or near historic lows and despite the negative headlines , the US is not going out of business.

If you find the home you love.

If you can afford your mortgage payment.

If you plan to stay in your home for some time.

this 'bad'housing market may prove be one of the best buying opportunities for you and your family.

--------------------------------------------------------------------------------

Copyright © James Wexler