MARKET CONDITIONS

From Realty Times:

Market Conditions
by Realty Times Staff

When the government decided to place Fannie Mae and Freddie Mac into its conservatorship, it opened up many different possible avenues the heal the ailing giants.

The New York Times reports that there haven't been any specific proposals made by lawmakers to date on what to do -- but in one option, some lawmaker "favors restoring the companies to health and then returning them to the way they were before they went into conservatorship, but with safeguards to prevent another crisis."

This seems a much milder approach than free-market theorists who favor a liquidation of the companies.

National Association of Realtors President, Richard Gaylord, issued the statement: "I commend Treasury Secretary Paulson and Federal Housing Finance Agency Director Lockhart for their bold actions to bring stability and continued liquidity to the nation’s mortgage market. Fannie Mae and Freddie Mac have always played a vital role in the U.S. economy by making fair and affordable mortgage loans available for home buyers and owners. Their critical mission must not be interrupted, and Sunday’s announcement goes a long way in making sure that does not happen."

Many experts hope that with this takeover will come restored confidence and more movement in the mortgage markets -- and maybe more affordable housing.



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