Fannie Mae and Freddie Mac were created by Congress to help more Americans buy homes. Now their shaky condition threatens the entire housing market.Fannie Mae and Freddie Mac owns $5 trillion mortgage value, which is half of the country’s total outstanding home loan debt. Now, when these behemoths shows signs of weakness, then where should the home owner turn to?

Both the giants in home mortgage are struggling at this point of time. Investors are losing out the confidence on both these two lenders. Though they will not go under but their functions will be considerably impaired following the loss […] Continue Reading…

Shares of Fannie and Freddie Mac are on a wild run, thanks to the anxiety surrounding these two behemoths. Both the firms’ recovery is very crucial for the economy as well as the housing market in the U.S.Investors shied away from the stock as they speculated a bailout by the government which would wipe out the value of the stock. The investors who hold the shares started selling it due to the speculation. Then the scene turned after two relevant happenings -

In one, a leading senator assured that here is no need of any bailout

In other, a Reuter report […] Continue Reading…

Feds seize bank - once a leading mortgage lender. It may turn out to be most expensive collapse ever. One thing is sure: The credit crisis is still with us.IndyMac is down. Fed has seized this once a leading mortgage lender. This shows that the credit crisis is still looming over the heads of the U.S. residents. IndyMac Bancorp Inc. is a mortgage lender. It was taken over by the Fed recently. The operations were shut down at 3 p.m. and transferred to Federal Deposit Insurance Corp

This is a dangerous happening for the IndyMac customers. Among the $19 billion […] Continue Reading…

The whole U.S. is seeing new loans and more refinancing as the prices of loans are declining. Price of 30-year fixed-rate mortgage is declining and alongside generating more and more loans and refinancing.When the week ended in June 27, both for the delight of the mortgage professionals as well as homeowners, the number of application showed an increase. The total volume rose 3.6% in that week. This was revealed in the Mortgage Bankers Association’s (MBA) weekly application survey.

The index was seen on 477.7, which is a good bounce from 461.3, the year-to-date low. At the same week, refinance volume […] Continue Reading…

The demand for new home may take 2 years more to return to the normal rate, in the prevailing situation. This is the concern expressed by  the  Head of National Association of Home Builders.

In general any recession in housing sector recovers fast which is absent this time. So, the stability of housing sector may need more time and it may go well past 2010 mark. According to the experts, the market may start to stabilize in the early summer. The demand will take some more time to pick up and after sometime after increasing demand only stability can be […] Continue Reading…