PattiMace.com

I would love it if you all would please post on my website your thoughts on the economic conditions so that I and others can have your input in regards to purchasing homes while the economy is in a recession. In this real estate market there are positives and negatives regarding buying or selling a home.

On the good side first-time home buyers have the same advantage they have always had, which is that they do not have to sell their old place before buying a new one.  This purchase is a positive for the economy, plus once the first-time home buyer purchases the home it leaves the door open for the seller to move on or up to a larger home which continues to help stimulate the economy.

Unfortunately for sellers home prices have dropped significantly especially with all the foreclosures and short sales on the market.  Depending on where the home is located it may be a few years before home prices begin to move in an upward direction.  

 Post to me your thoughts!  Also, keep working on your credit score and saving towards your new home. 

www.pattimace.com,  or patti@pattimace.com

hope to hear from you all….

The Senate passed the 700 Billion dollar Bailout of Freddie Mac and Fannie Mae today.  I am curious if everyone out there knows what these companies do and why the Government stepped in to help out.

First, to help clear some of the confusion, these two companies are mortgage guarantors.  Fannie Mae was created back in the Great Depression by Roosevelt’s administration to back loans by private banks in order to make homeownership more assesible.  Years later the government allowed Fannie Mae to be privately managed. Freddie Mac was created by the government to keep Fannie Mae from becoming to big.

Fannie Mae and Freddie Mac guarantee more than $5 trillion in mortgages, almost half of those in the United States, With many of the mortgages defaulting, the companies are, in effect, bankrupt.  These two companies are such a large part of our financial system that failure of one or both would be detrimental Nationally and Globally.

This takeover was put in place to protect us, the taxpayer. How, well the U.S. government will be creating more demand in the marketplace by buying Fannie and Freddie mortgage bonds, homeowners and buyers should start seeing lower mortgage rates.  This may become one of the best times to purchase or refinance your home.