NAR predicts increase in home sales due to Fannie & Freddie's takeoverSeptember 9th 2008 |
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The National Association of REALTORS® has predicted that the federal government’s takeover of secondary mortgage giants Fannie Mae and Freddie Mac should cause a drop in mortgage rates in the short term that benefits home buyers. The GSEs (government sponsored enterprises) will be allowed to increase their mortgage funding over the next year and a half to help stabilize markets. Starting in 2010, the plan calls for them to reduce their portfolios. In the short term, this should result in government money driving interest rates down, which is expected to spur an increase in home sales. For more information from NAR, click here.
For the latest news on the impact of the Fannie & Freddie takeover, click here.
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