1) Interest rates on Frannie connected mortgages will fall as Frannie will pay less to borrow in the market.
2) Frannie will temporarily buy more mortage backed bonds; presumably new ones. So this will help supply.
BIG Question ( as alluded to above). Will Frannie tighten conditions. I can’t see anything written about that. If acceptance terms stay the same, then taking into account all the above, will it not be positive for the market???
