Milwaukee Condo & Real Estate Scene

The National Association of REALTORS®: NAR Says Fed's Buying of Fannie, Freddie Debt Will Drive Down Interest Rates and Help to Stabilize Housing

Great news home buyers and home sellers! The Treasury Department has recently announced its plans to purchase up to $500 billion worth of mortgage-backed securities (MBS) from Fannie Mae, Freddie Mac, and Ginnie Mae.

Why is this great news for you and the economy? The Federal Reserve will soon unlock the money tied to MBS which will free up money for future home buyers. With this action, analysts predict that interest rates for long-term loans will fall even more from the already-low national average of 5.5%.

The National Association of REALTORS® (NAR) is confident that falling interest rates will jump start the housing market which will also jump start the overall economy. How? With falling interest rates, buyers are able to increase their purchasing power to buy their next home. Home buyers will be able to take advantage of these low interest rates which will increase home sales. The increase in the number of homes sold will decrease our current inventory levels. The decrease in the inventory levels will help stabilize prices. This domino effect will provide price stabilization for housing which will create a healthy housing and economic recovery.

Lucien Salvant and Mary Trupo of the NAR provide more details regarding the impact of the Treasury Department’s decision. Click here to read why this move is critical for not only the health of the housing market, but the overall economy as well>>>


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Labels: Finance

posted by David Ray @ 11:42 AM