Thanks to their recent quarterly reports, we know that Fannie Mae and Freddie Mac both enjoyed profits during the third quarter of this year. Fannie Mae had a profit of $8.7 billion, while Freddie Mac had a profit of $30.5 billion.
What does this mean for the American taxpayer? It means good news because; both Fannie and Freddie are close to you paying off the bailout money that the Obama administration put into their businesses back in 2008.
During the days preceding the 2008 bailout, it did not look like Fannie Mae and Freddie Mac were going to pull outs of the massive hole that they found themselves in but, thanks to the government taking over the two financial giants, loaning them close to $200 billion in 2008, both Fannie Mae and Freddie Mac are close to being out of debt to the United States government and getting back on sound financial footing once again.
Fannie May and Freddie Mac have both enjoyed profits for seven straight quarters and these consistent profits over the last couple years have enabled them to get close to paying off all of the bailout money that the Federal Government has invested in both businesses but what does this mean to the Bend Oregon home buyer?
The latest word is that the Federal Government is trying to get out of buying mortgage backed securities and when they do this could cause mortgage interest rates to go up at least temporarily until home buyers react to these new conditions in the mortgage market but mortgage interest rates shouldn’t increase dramatically since everyone from President Obama to local Bend Oregon Realtors agree that the growth of the Real Estate market is driving economic recovery in the United States.
To learn more about the latest Fannie Mae and Freddie Mac news, or if you are interested in viewing the latest Bend Oregon homes for sale, contact me today by calling 541-386-1426.