Low Interest Rates Caused by Fannie Mae and Freddie Mac Takeover

By
Real Estate Agent with Keller Williams Realty- Red Stick Partners

Interest rates are the lowest we've seen in 5 months, starting at around 5.5% today!

What caused this?  The takeover of Fannie Mae and Freddie Mac by the Feds; the two mortgage firms will now be overseen by the Federal Housing Finance Agency.  The government will only temporarily control these firms until they "are on a stronger footing".  President Bush says of the takeover, "Americans should be confident that the actions taken today will strengthen our ability to weather the housing correction and are critical to returning the economy to stronger sustained growth in the future."  Read the article "U.S. Seizes Fannie and Freddie" by David Ellis at CNN Money for more.

What does this mean for Buyers?  "Sunday's Federal takeover of Fannie Mae and Freddie Mac will likely translate into lower mortgage rates and greater availability of credit, experts said.  Rates should drop by 1 percentage point from the stubbornly-high 6.39% for a 30-year fixed rate mortgage", says Tami Luhby, author of "What Rescue Means for Mortgage Rates". 

"This could be good for would-be homeowners," said Tom LaMalfa, managing director, Wholesale Access, a research and consulting firm. "It would reduce the cost of financing at the new and improved Fannie and Freddie."  Tight Standards and for borrowers with weaker credit histories will remain.

Baton Rouge Real Estate is not slowing down!  In fact, Baton Rouge was recently named one of the 10 fastest growing real estate markets in the nation by Money Magazine.   With these low mortgage rates, now is the time to buy! 

Toni House
(225) 964-6535
Toni@ToniHouse.com
MaketheHouseCall.Com

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Rainmaker
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John Walters
Frank Rubi Real Estate - Slidell, LA
Licensed in Louisiana

Toni do you think that is because of people moving from the Southern part of the state to escape hurricanes?

Sep 15, 2008 11:28 AM #1
Ambassador
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Konnie Mac McCarthy
MacNificent Properties, LLC - Cobb Island, MD
Broker/Owner - VA & MD "Time To Get A Move On!"

well, that is great news...I am hoping that this does continue...

Sep 15, 2008 01:34 PM #2
Rainmaker
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Tony & Darcy Cannon
Aubrey and Associates Realty - Layton, UT
The C Team

Toni, I hope that this will get credit worthy buyers to realize that now is the best time to buy that we have seen in many years!

Sep 15, 2008 02:48 PM #3
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Toni House

Realtor, Baton Rouge Real Estate Expert
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