The government takeover of mortgage financiers Fannie Mae and Freddie Mac could mean lower interest rates for many borrowers but is unlikely to solve one of the biggest problems of the credit crunch: the shrinking number of people who can get a loan in the first place. Fannie and Freddie will be permitted to expand their direct investments in mortgage-backed securities from $1.5 trillion to $1.7 trillion over the next year. With the government standing behind their debts, investors are also expected to be more willing to buy mortgage-backed securities guaranteed by Fannie and Freddie. That could push the rate for a 30-year fixed-rate conforming mortgage down from 6.35 percent last week to "well below" 6 percent, according to Mark Zandi, chief economist at Moody's Econo...
Get Inman via Facebook Messenger
Our top headlines delivered once a day.