Rate Update September 8, 2008/ Fannie Mae & Freddie Mac bail out
The big news this morning is the government take-over of mortgage giants Fannie Mae & Freddie Mac. The announcement which was leaked on Saturday and made yesterday is likely to become the largest government intervention into the financial markets in US History.
Because of the unprecedented nature of the event it is very difficult to predict the practical implications. However, in the near term watch this morning’s you tube video to understand why the announcement will help mortgage rates in the near term.
Expect a more detailed summary of this announcement in the coming days. For a detailed review of why Fannie Mae and Freddie Mac are so integral into our economy please visit this link.