Gwinnett County Mortgage Market Update
September 12th, 2008 Categories: Financing, Gwinnett
What a week! Last Sunday Fannie Mae and Freddie Mac were taken over by the government. What does this mean for you? The fact that the US government is backing Fannie and Freddie’s mortgage debt has had a positive effect on mortgage rates. We dropped a half of a percent on Monday but rates have since trickled upwards. However, we are still one quarter of a percent lower than we were last Friday. The government wanted to keep the mortgage markets moving and it appears to have been a success, so far. That being said, there are a couple of things that remain unclear. First, how much is this going to effect us as taxpayers. Second, starting in 2010, Freddie and Fannie are supposed to start downsizing by 10% per year. What type of mortgage market is this going to create? I guess we’ll have to take and wait and see approach. It is also being reported that Lehman Brothers and WAMU are having significant struggles. The main reason being too many risky mortgages. This shows us the the mortgage crisis is not over and if those two giants go down what ramifications will that hold for the financial world? My advice to you, if you’re in the market to purchase or refinance a home, is to have a mortgage planner on speed dial. Tell them exactly what you want. The rate and program may only be available for a short time period.
