Mortgage Discussion for the Panhandle area

You you are aware our United States Government has decided to take over the two mortgage giants Fannie Mae and Freddie Mac. What does that mean for you? Here are my thoughts on the subject as of today.

Short term I do not think you will see or notice and difference in how loans are approved or closed. Rates should remain stable or get a little better. You will not see huge drops in rates or any looser underwriting guidelines. You will not see higher rates or guidelines tighten either. Just more of the same for now.

On a longer term it will be a guess. I am requesting the papers the Federal Reserve used to form the take over and see if they have any clues to the future. Remember with all things government there is the "why" that they tell you and always the "why" they do not. I need to do a good bit of research before I try and answer this question.

Stay tuned as I will try my best to break down this issue in my blog this week with facts.

The markets have truly been on a wild ride this week as the news you have seen is digested. Mortgage rates are currently at or about 5.5%. This moves every day but still people do not seem to understand how low rates are and feel the need to wait longer. Let us take a second and look at this.

As you know our United States of America took control of Fannie Mae and Freddie Mac. This sent a calming throughout Wall Street and other investor platforms. Investors have been buying mortgage backed securities and driving rates down. The government has been silent lately about the takeover so that is good news. This part of the ride was the steep fall of the roller coaster in the beginning.

Now we have Lehmen Brothers, Morgan Stanley, Countrywide, Washington Mutual and AIG issues in the financial markets. These are weighing heavily on the mortgage market as these companies are heavily tied to foolish mortgage practices and bad management. Now we are left with a market in turmoil about what to expect next. The coaster goes up the next hill.

With all this news you would think we will never close another mortgage or sell another house. That is all hype and one sided media coverage. The Media needs ratings and they get that by sympathy as well as blaming banks and mortgage companies for all troubles. When has the media ever run a story about an irresponsible homeowner in foreclosure because he made bad decisions and bought a house he could not afford? NEVER it is always the lenders fault.

 Houses sell and mortgage rates are again at historic lows. Money IS flowing freely into the housing market and we still get young couples with some credit issues approved everyday. It is easy to throw up your hands in defeat but things just are not that bad.

The Federal Reserve today felt there was no need to lower rates again. This is great news as our U.S. Dollar will regain strength and gas prices will fall again. By not moving the rates the Federal Reserve sent a message to us in the public that the markets are soft but under control. Some will perish but others will get stronger.

The simple fact is rates are down and again now is the time to buy a new home or refinance your present home. Find a good realtor and make some offers.