With the U.S. Treasury's takeover of Fannie Mae and Freddie Mac, what are the implications for home owners and those looking to purchase a home?
- Mortgage rates are probably headed lower. Shortly after the market open on September 8, the national average on 30-year fixed-rate mortgages dropped from 6.55% to about 6.2%. The magnitude of the drop in rates and over what time period is far from clear.
- A turnaround in housing will take time. While the massive oversupply of homes for sale won't be unwound merely by lower lending rates, they should be a helpful factor.
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