Archive for September 8th, 2008
Can The Government Takeover of Freddie and Fannie Be a Good Thing?
September 8th, 2008 Categories: Buying a Home, Mortgage and Finance, Real Estate Market Trends
My first response is that the government taking over anything is not good. But considering that Freddie Mac and Fannie Mae are not your typical private companies, maybe this is the best we can do.
I just had a mortgage lender friend of mine tell be he thinks we are headed for rates well below 6% again. If you are in need of a mortgage, that is good news. Low rates always motivate buyers, so maybe the national housing market will get a little relief.
Here in the Raleigh area, our market has been doing better than most. But I would not be honest if I did not admit it has been very slow this summer compared to recent years. If my lender friend is right, and rates do take a significant drop, then an otherwise healthy housing market, like ours here in the Raleigh area, should see a positive impact.
Nationally, there is still lots that has to happen for the real estate market to stabilize and start to improve. Inventory has to be reduced. With foreclosures in many parts of the country offering attractive equity positions for buyers, and now with rates showing the possibility of declining, maybe this will help.
Being the stubborn, free market kind of guy that I am, I can’t help but wonder what the long-term cost will be. But for the present time, once again, if you need to buy a home, there has never been a better time.
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