As we all know fannie and freddy are one the biggest companies in the US.
The hold 6 TRILLION DOLLARS, YES THAT NUMBER IS CORRECT according to www.realtor.org .
half of the nation mortgage paper is owned by them!!!!!! and if the government takes over that will mean that the stock value of those companies for the stockholders will be basically wipe out!!!!!
BUT ON MY OPINION if that happens I think that we might get a good rally on interest rate drop because even tough the 10 year treasury note (tnx) has gone down , the spread is over 130% and the interest rates haven't drop as it should.
but when our government starts with the bailout. I would think that it will help us as Real Estate Professional in New york, Long island, California, Everywhere. because if interest rates drop even more and with the decline in home prices , we might see a better real estate market , or better activity report than expected!!!!!'
please let's hear everyone opinion.
Sincerely Remax Imperial
Long island Real estate company!!!!!!
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So, I guess that's why the buyers are really starting to come out!
They aren't going to "nationalize" Fannie and Freddie are they? I mean of course they started out as a quasi government program anyway. Are they just going to manage the bailout or take them over?
We read the news this morning that the feds are going to take over Fannie and Freddie immediately. The stock value will be zip. Much of it is held by banks and foreign investors. The stock market will take another hit. 9% of US mortgages are apparently either late in payments or in the foreclosure process. Will a government takeover help? It won't help Fannie and Freddie stockholders, that's for sure. And it will likely to put more banks closer to, or over the edge. And it will increase the national debt, which is already beyond imagination.
So, is there any good news? Yes! Half of the mortgages in the country will still be backed by the federal government. Interest rates could improve. Maybe we're finally at the bottom of the slide. The new mortgage programs for first-time buyers are producing more action in the market, and more people are seriously considering buying. In the last two weeks we have suddenly seen a local increase in buyer activity.
We continue to believe the election cycle has a lot to do with how the real estate market and the overall economy is reacting. Now that there is a real presidential contest with the election less than two months away, people seem to be feeling more positive about the future. No matter who wins, some important things are going to change. Hopefully we'll see a return to basic fiscal responsibility that will boost the economy and our businesses!
so what is this mean
that interest are going to drop
that we are going into a recession?
or that i should be happy?
please explain and clarify