Freddie Mac and Fannie Mae update

Mortgage and Lending with Citizens National Bank

So, now that these giants are under government control...what's next?

I was thinking about that when I heard about it yesterday and thought it could go either way, good or bad for the short term.  I thought maybe things get worse before better, however, government programs are more lax and rates are better.  So, as you can imagine, I started my research this morning and have come to a conclusion.  We have something good right now and I don't think there will be a "worse" before better situation.  Now that the government seal of approval is attached to Freddie and Fannie bonds, investors are at ease with purchasing these bonds and we're in a good spot.  Refi's ahead (from what I can tell)!

Investors were hesitant on whether or not to buy Freddie or Fannie Bonds which forced them to make their bonds more attractive my raising the yields without a rate increase that intensified the problem.  Now that the goverment has attached their seal of approval, investors are more comfortable buying these bonds.  And I'll have to tell you, rates have gotten better. 

So, for anyone that may be a little worried, I'd have to say things are good for us.  I hope all is well with everyone and I'd be more than happy to answer any questions if you have any.  Just let me know.

Have a great day!

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