An unusual thing happened amid the latest drubbing of Fannie Mae and Freddie Mac shares and the rest of the stock market yawned.
Wednesday was the first time this year that both Freddie Mac and Fannie Mae fell 20 percent or more while the market ended higher. And don’t be surprised if that decoupling is just beginning, says Michael O’Brien of Emerald Coast investments.
Under the current guidelines a large percentage of current home owners are not eligible for a new home mortgage.
If the banks continue to write loans scared the amount of qualified buyers will continue to shrink. Basic supply and demand will continue to drive real estate values down. This is basic economics 099.
If the banks, Fannie and Freddie do not get together they will all go the way of the Dodo.