WOW! Our entire world is changing right before our very eyes!
S&P Downgraded Fannie Mae and Freddie Mac as written in the CNBC article.
This is going to send shock waves through the real estate market. Fannie Mae and Freddie Mac guarantee over half the mortgages in this Country. They account for almost all the new mortgages written. I will go out a limb and say we are likely to see higher interest rate even if the 10 year bond does drop more…
Just what our real estate market needed… (sarcasm..)
Maybe it is time we go back to basics. Get rid of Fannie and Freddie and let banks lend money based on your ability to repay the loan.