The Government is talking about the possibility of the Treasury Department buying up 30 year fixed mortgage backed securities from Fannie Mae and Freddie Mac so that we can push down the rates to 4.5%.
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This would be excellent news to kick start the housing sector which is stuck in the mud now. Wouldn't it be wonderful to allow people to have reasonable mortgage rates so that people can buy or refinance their rates? Finally, after months of helping corporations, an effort to help the regular homeowners is being discussed.....
I know from first hand experience that buyers are sitting on the fence because they are unable to get loans from banks. An interesting situation because for buyers, this an excellent opportunity to buy, but being unable to get the loans to actually commit to the purchase.
As we have learned over the last couple of months, in order for our economy to strengthen, consumers must start spending to drive up demand for serivce and products. Many economists believe we need to get the housing sector moving first to kick start our economy. And as we know from experience, when mortgage rates drop, people start buying homes. Let's all hope that this talk transforms into action.
Steve Mun, Silicon Valley Realtor
www.stevemungroup.com
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