Having two government-sponsored entities ( Fannie Mae Fannie Mae and Freddie Mac Freddie Mac ) responsible for the securitization of the majority of mortgages written in this country is anathema to an economy as pro-market as the US. And yes, we do want to ensure widespread access to low-cost, fixed-rate, 30-year mortgages. The 30-year, fixed-rate mortgage is the bedrock of the current housing finance system in the US. It has allowed tens of millions of low-income and middle-class buyers to achieve homeownership over the past several decades. But outside of the current system, which most everybody agrees needs to be changed, its very difficult to have this particular flavor housing cake and eat it too. There are currently two proposals for reforming the housing finance system.
For the original version including any supplementary images or video, visit http://www.forbes.com/sites/stanhumphries/2013/09/13/why-a-better-housing-finance-solution-shouldnt-be-the-enemy-of-the-best-solution/
Low inventory continues to plague the D.C. housing market
After 24 months of double-digit year-over-year declines, the pace has slowed to a single-digit year-over-year decrease. The 8,301 active listings last month were down 9.7 percent from August 2012 and down 1.1 percent from July. While that is encouraging news, the number of active listings is still 34.5 percent below the five-year average for August (12,673).
For the original version including any supplementary images or video, visit http://www.washingtonpost.com/blogs/where-we-live/wp/2013/09/10/low-inventory-continues-to-plague-the-d-c-housing-market/
Housing Markets About to Get Squeezed
As private investors fled the mortgage market, Fannie Mae and Freddie Mac took their place and have since been buying most of the mortgages that lenders have been providing to borrowers. Higher caps on federally backed mortgages allowed more buyers, who might have otherwise been unable to buy a home, to qualify for those loans. Now that the housing recovery is gaining steam, the government is trying to reduce its role in the mortgage market. A spokesperson for the FHFA says that the agency shares the administrations view that a gradual reduction in loan limits is an appropriate and effective approach to reducing taxpayers mortgage risk exposure, shrinking the footprint of Fannie Mae and Freddie Mac in the marketplace, and expanding the role of private capital in mortgage finance. But analysts caution that lowering their caps could have property management maryland a domino effect on home sales.
For the original version including any supplementary images or video, visit http://finance.yahoo.com/news/housing-markets-squeezed-120214467.html