Sep
09

A Big Housing Sigh Of Relief

By

September 9, 2008

By John P. McDermott – The Post And Courier

The door of a home that was foreclosed on is marked with a message in Salt Lake City. The takeover of Fannie Mae and Freddie Mac likely will help ease mortgage rates for home buyers, housing experts say.

Anyone in the market to buy or refinance a home had reason to cheer the government’s takeover this weekend of mortgage behemoths Fannie Mae and Freddie Mac.

The reason: The national average rate on a conventional 30-year fixed-rate mortgage fell from Sunday to Monday by almost a fifth of a percentage point to less than 6.08 percent, according to Bankrate.com. Some local lenders reported even bigger swings as Monday progressed.

“It will definitely be a positive more than a negative,” said Dan Butts, a mortgage banker with Bradford Mortgage Co.’s Charleston office. “Everyone was waiting for this.”

“We believe it’s good for the marketplace,” added Terry Francisco, a spokesman for Bank of America.

Sunday’s historic takeover of Freddie and Fannie underscores the essential economic role the companies play by serving as the financial backbone of the mortgage industry.

ARTICLE SHORTENED DUE TO LENGTH….

LINK TO ARTICLE HERE:
http://www.charleston.net/news/2008/sep/09/a_big_housing_sigh_relief53508/

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