What the Fannie and Freddy Recovery Means for Columbia SC Real Estate
As you may remember, Saturday I wrote about Columbia SC Real Estate Mortgages and how they are affecting the Columbia SC Real Estate market. There has been a lot, a lot of talk over the weekend about some major players: Fannie Mae and Freddy Mac. A brief bit of info on Fannie and Freddie, as they are often called: they own or back over $5 trillion of mortgage backed securities. More than likely they are backing your mortgage if you are a conventional borrower. In addition, I wrote about the demise of IndyMac Mortgage company and how it relates to Columbia SC Real Estate.
Today, the fed announced that they are going to ’shore up’ Fannie and Freddie by opening up their Lines of Credit and lend to them at 2.25%, the fed funds discount window. This is all well and good, but they need $75 billion according to most mortgage market insiders and regulators. That is a lot of money. More than Bill Gates has.
However, this is good news. The fed, as we all assumed, are not going to let Freddie Mac or Fannie Mae go under. This is very important. Without the twin’s, there would be no mortgages. There would be no housing market. Prices would plummit, even in Columbia SC Real Estate where we have not been hard hit with price failure.
With the two around and viable, money will be able to be given out, however, banks are going to get even tighter (yikes) on lending money.
In addition to more money, low interest rates, the Fed will be allowed to invest in Fannie and Freddy. The fed, using your tax dollars, will be sinking YOUR MONEY into funds that have dropped like rocks. However, it may be necessary.
Due to the shoring up of Fannie and Freddy, Columbia SC Real Estate will remain viable. The majority of houses around here, being under the Jumbo Loan arena (Jumbo loans are loans on property over $417,000), are backed by the twin’s therefore, more money can be given out.
Keep reading this week as more info will be coming out!
Filed under: About Your Columbia SC Real Estate Agent, Columbia SC Real Estate Buyers, Mortgages, Sellers
