Many Americans already have whiplash after recent swings in mortgage rates: After the average 30-year fixed mortgage rate peaked at nearly 8% last fall, rates fell steadily ahead of the Federal Reserve’s first interest rate cut in September.
That trend has since reversed, and mortgage rates have climbed back up to nearly 7% as investors bet that the Fed will cut rates fewer times than initially expected due to recent strong economic data.
This helps enable a reliable flow of money to mortgage lenders, allowing them to offer more affordable rates to would-be homebuyers.
During the housing meltdown of 2008, the two companies were brought under government control in an effort to stabilize the housing market.
Some analysts advocate for full privatization, meaning the government would not provide assurances to backstop the two mortgage companies.
Persons:
Donald Trump, Fannie Mae, Freddie Mac, —, Fannie, Freddie, that’s, Ted Tozer, Ginnie Mae, Obama, ” Tozer, “, Mark Zandi, Zandi, ” Zandi, ” Karoline Leavitt, Vance, President Trump, Trump, Freddie don’t, Andrew Harnik, Susan Wachter, Wachter, ”, Norbert Michel, Fannie Mae’s, Freddie Mac’s, ” Trump, Republican Sen, Rand Paul, Trump’s, Bill Ackman, Pershing, It’s, it’s
Organizations:
CNN, “, Moody’s, Investors, Trump, Federal, stoke, Federal Housing Finance Agency, Federal National Mortgage Association, Wharton School, University of Pennsylvania, ”, CATO Institute, Republican, Pershing Square Holdings, U.S, Presidential
Locations:
Mexico, Canada, China, Washington , DC, conservatorship