Real Estate Market Is Poised To Bounce Back
The real estate market is really looking up recently. Now that Freddie Mac and Fannie Mae have reduced their reserve requirements and are back in the mortgage securities business, things are bound to get even better.
See, Freddie Mac and Fannie Mae greased the wheels of the housing boom and when they upped their reserve requirements, it took two huge players out of the mortgage securities market. Now, they are back in the game and that means that there is all a sudden a lot more liquidity in the mortgage securities market. It means that mortgage interest rates should come down and housing prices are going to start stabilizing.
If this is the case then it backs up the fact that now is the time to enter the real estate market.
They didn’t know?
I have been following the business world lately. It seems that businesses are having so much of a hard time handling the sub prime fiasco. I read yesterday that the Fed was caught off guard and so were banks. I find it very fun because most of us with an brains knew that you couldn’t lend billions to those who couldn’t afford the loans. It is pure stupidity to think that would have been possible, but I guess the big brains in business and the economy are claiming they didn’t know. Oh well, we all pay for their excesses.