[quote=SK in CV][quote=Diego Mamani] Take out Freddie, Fannie, and the FHA, and prices would really drop to reality! Painful? Yes, but I’d rather live in a painful reality than in a fantasy world that I know is unsustainable. Gov’t intervention, and now the courts meddling, are simply prolonging the fantasy, meaning, the pain will be even worse when the chickens come home to roost.[/quote]
Explain please. How are the GSE’s keeping the prices up now as compared to in the past?[/quote]
If not for the govt-backed mortgage market, there would be no mortgage market, at least not at these interest rates, and not with down payments less than 20%, and even that’s optimistic, IMHO.
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Government-related entities backed 96.5% of all home loans during the first quarter, up from 90% in 2009, according to Inside Mortgage Finance. The increase was driven by a jump in the share of loans backed by Fannie Mae and Freddie Mac, the government-owned housing-finance giants.
