With the Federal Government’s announcement of the nationalization of Fannie Mae and Freddie Mac many breathed a sigh of relief.

The National Association of Realtors has commented that the purchase by the Feds of the loans owned by FNMA and FHLMC will help give confidence to the market as well as free up capital on Wall Street and Main Street USA.

Since the announcement of the $700 Billion rescue package the Federal Governments implementation of the plan has been carefully watched. Originally the plan was to purchase Mortgage Backed Securities from banks and this week the government has given authorization to purchase them from Fannie and Freddie which are two of the largest players in the industry.

This decision has been applauded by the National Association of Realtors for two big reasons. Firstly it will stabilize the housing market and Secondly it will lead to lower interest rates for the longer term. Just a one percentage point drop in mortgage rates would potentially increase home sales by 500,000 – a great shot in the arm for the economy as well as the housing market.

If you are interested in purchasing a property in Malibu, Pacific Palisades or the surrounding southern California area then please contact Judy Kunisaki for professional real estate advice in the Westside Los Angeles area, on 310-317-8396 or via her online contact form on her website.

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