The Real Estate market has been a slow and bumpy ride over the past 2 years and its news like this that helps pushes the economy in the right direction, keeps us moving forward instead of standing still or going backwards.
There has been mixed press lately on the views of this takeover ranging from outbursts oh having to pay for the takeover with our hard earned taxes to investors losing out on money with the takeover.
Bottom line is this takeover is crucial for us to improve in the right direction. One benefit factor that impacted right away was low interest rates.
- Almost immediately our Nation has seen a drop in the interest rates back to the 5% Range. Fannie and Freddie had trouble selling the mortgage-backed paper and now banks feel more secure and confident in these loans and instead of selling to the secondary market, most banks can have the confidence in keeping some of their portfolio.
- Rate of Foreclosure will come down as the forecast of the final bottom of the market in the 3rd quarter of 2009. More money is being flowed back in the economy with this surge of confidence in conventional loans.
- House Depreciation will improve too as well. Most foreclosures and defaults were due to conventional loans preventing clients from re-financing or finding alternative options. Now that the government has stepped in with the convention loans, there will be more room for the government to help homeowners keep their homes.