I can’t imagine there are too many that have not heard the news about the US Government take over of Fannie Mae and Freddie Mac. I wanted to shed a little light on it and open the doors to any questions or concerns. There are immediate concerns and there are immediate benefits. My overall advice would be to take the negatives with a grain of salt and see the positives for what it can do for you in the short and long runs. Shareholders in Fannie and Freddie will be hurt the most. It’s inevitable that they will loose a lot if not everything. Our tax dollars will rise to help support the bailout. Lending may tighten but Fannie and Freddie lending guidelines could also start to take on the makeup of FHA today. That’s just an interesting Matt Askland possible prediction. That in it self will change a lot of the lending practices for the positive, increasing and making Fan and Fred more competitive to the FHA mortgage market share. I can tell you for one thing…… My rate sheet this morning has already seen a ½ point reduction in the borrower offered rate. For my lending partners, this means a potential overall full point swing in our bottom line. For you and your clients this means getting you mortgage rate under 6.0% very affordable. Will the rates continue to drop? No one can say for sure but this is an opportunity to look at your current mortgage terms again or another reason to push potential buyers off the fence. Homebuyers have been waiting for that big sign that says, ‘we are at the bottom of the market.’ This bailout will keep and should almost create the bottom of the market. Low rates and buying low is the best recipe for success.
If you are in the market or have clients that are on the fence,…..Get off the fence!!
Nick Woodard
Middle Tennessee Realtor
nick@nickwoodard.com
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