Tag Archives: freddie mac
Freddie Mac’s March 26th report on the national averages for mortgage rates brought welcome news for those hoping to buy a home in the coming weeks. For the second week in a row, mortgage rates dropped. This kept the rates on a 30-year fixed-rate mortgage under 4 percent, and dropped the rates for a 15-year fixed-rate
Freddie Mac and Fannie Mae have played a crucial role in helping tens of millions of Americans become homeowners over the past several decades. The two Government Sponsored Entities (GSEs) have provided access to low-cost home loans and have been a core part of the government’s efforts to make affordable housing available to all Americans.
While Fannie Mae and Freddie Mac are two separate companies, they both act as guarantors of mortgages and purchasers of “conforming” mortgages which eventually are sold to investors. Before they failed in 2008, they were both considered to be extremely safe companies which allowed them to borrow money at extremely low rates. However, once the
The Crisis Because of extensive damage to the lending industry, the backdrop to the modern mortgage deal has shifted. Prior to the crisis, lenders were cautiously liberal. Possibly, the prevailing philosophy was that a healthy batch of indebted consumers was necessary for a healthy economy. In those days, housing and finance laws reflected a hands-off