So you have been hearing Fannie Mae and Freddie Mac on the news a lot lately. What’s this mean really?
Fannie Mae and Freddie Mac were placed into conservatorships on Sunday which means that the government has replaced the CEO’s and Boards of each company. The Treasury will purchase Senior Preferred Stock of Fannie and Freddie to provide capital as needed in amounts up to $100 billion for each company. The financial commitment by the United States Government will substantially increase confidence in Fannie and Freddie and the US housing Market and provide stability.
The US Treasury effectively guaranteed that mortgage backed securities will be backed by the US government which means that rates will likely hold at current levels and/or decline like we have seen past week.
Bottom Line: Rates are incredibly low, and buyers should capitalize on this market.
Related posts:
- 11% growth in home sales forecast for 2010 The longest recession since the Great Depression is over according to...
Related posts brought to you by Yet Another Related Posts Plugin.
