Fannie and Freddie rescue

The federal government took over Fannie Mae and Freddie Mac this past Sunday. Fannie and Freddie depend on investors so they can get more money to issue new loans. With the uncertainty in the market and the number of failing mortgages, there are fewer investors out there. The government took over to make sure there is enough money out there to lend to keep the housing market moving.

During these last few days, interest rates have dropped dramatically from about 6.6% to about 6.1%! If you have been "on the fence" trying to decide if it's the right time to buy or not, now is the time to pick a house and lock in the lower rates!

This doesn't mean that it's any easier to get a loan. Lenders are requiring buyers to have higher credit scores and larger down payments than in recent years. Also, the lenders are charging higher fees for those buyers with lower credit scores or smaller down payments. Call your lender for more information and call me if you're ready to buy because now is the time!