Fannie and Freddie News

Posted by Emily Ray-Porter Group on Monday, September 8th, 2008 at 9:38am.

Here is what Craig Jarrell of Pulaski Mortgage had to say about the news:

The implied guaranty of the government has now
become a direct guaranty and subsidy. How will
this affect the average consumer and Realtor?
I predict the following changes:
Interest rates will rally about one quarter to one half of one percent lower as borrowing costs are reduced.
Conforming limits will rise and become more national
in scope in all 50 states.
Jumbo lending will benefit from higher conforming limits.
There will be an orderly transition over the next 5-10
years of more portfolio lending by banks and less
reliance on Fannie and Freddie. Fannie and Freddie
will shrink by design by two-thirds in the next ten years.
Lower interest rates will stimulate sales and
help refinances and reduce inventory.
Lower interest rates will NOT help people with
bad credit and no savings, homeownership will
return to a privilege that is earned.
As the economy rallies, employment will
increase and that will help housing stabilize
more than lower rates.
Now is a great time to buy or sell real estate,
this move will only strengthen the market.
Craig Jarrell
President-Dallas Region
Pulaski Mortgage Company
Preferred Realtor Partner
Metro-Tex Association of Realtors
5956 Sherry Lane Suite 530
Dallas, Texas 75225
972-735-8585 office
972-381-6258 voicemail
214-361-5334 facsimile
"Referrals are the heart of my business"
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