Mortgage News Again?
This one you'll want to read!
Mortgages are in the news
again today...but this time,
the news is good! Especially
for people looking to buy or
refinance a home, as
interest rates have dropped
to the lowest levels seen
since '07.
You've probably heard that
Fannie Mae and Freddie Mac
were taken over or "bailed
out" by the Federal
Government over the weekend.
The announcement came as the
government felt that both of
these institutions were
potentially unable to meet
their obligations. These
agencies must pay off
maturing Bonds every month,
and they do so by selling
new Bonds. But during the
last twelve months, investor
appetite to purchase new
mortgage-backed security
Bonds has deteriorated. As
such, it has become more
difficult for Fannie and
Freddie to replenish capital
to fund more loans. If both
Fannie and Freddie became
insolvent, the housing
market as well as the
mortgage market would come
under further pressure.
With the Treasury stepping
in to provide a "backstop"
for the mortgage giants,
investors now have
confidence to purchase
Mortgage Bonds. And the
greater interest has helped
lower interest rates today.
Call me today, so we can
discuss what the news means
to you and how you can
benefit.
Brian Berman - Sr. Loan
Specialist - 678-923-6969
