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Residential Re-Sale, Commercial Properties, Foreclosures and Investments…As a long-time Fullerton resident Adam is intimately familiar with North Orange County neighborhoods. He has extensive expertise in residential real estate, commercial build outs, hard money lending and mortgage banking. As an authorized REO agent for GMAC, CountryWide Home Loans and World Savings he has extensive experience in all aspects of the foreclosure process. Investors rely on his knowledge and experience to help them identify and capitalize on distressed properties.

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Mortgage Rates Down After Takeover

September 15th, 2008 • Related • Filed Under
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To prevent even more financial crises in an already delicate economy, the federal government took over Fannie Mae and Freddie Mac, leading to a decrease in mortgage rates.

But what does this mean for the average person? And, more importantly, what does this mean for the average person’s mortgage?

On the day of the takeover, mortgage interest rates began falling almost immediately.

They finally settled at around six percent for a 30 year, fixed rate mortgage, which is the lowest the market has seen since this crisis set in less than half a year ago.

For everyday people, this means that the mortgage system that drives our housing market remains intact.

Although Fannie Mae and Freddie Mac do not directly give out mortgages, they buy existing mortgages from lenders, which frees the financial institutions to give out yet more mortgages.

Losing them would mean losing banking as we know it.

This puts mortgage rates at an all-time low, lower they were a year ago and certainly lower than they will be in another year.

Although banks are still being extremely selective about who they loan money to, the money is there to be borrowed cheaply.

Although this will not fix the housing market of the economy, the takeover of Fannie Mae and Freddie Mac is an opportunity for prospective homeowners.

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There Is 1 Response So Far. »

  1. Comment by Stacey Derbinshire on 15 September 2008:

    I discovered your homepage by coincidence.
    Very interesting posts and well written.
    I will put your site on my blogroll.
    :-)

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