It is suggested that the take over of Fannie Mae and Freddie Mac will result in lower borrowing costs and easier access to credit. The US Government seized the ailing lenders last week. Lower rates can mean a lower US Dollar vis-a-vis the Canadian dollar, British pound and Euro.
Are you going to rush in to borrow in a housing market in a major slump? This is great if you are preparing to re-finance your mortgage. If you are investing in real estate or considering buying, when is a good time? Will prices continue to decline? I am not expert. However, I observe that real estate, like all markets, move in cycles. Real estate in many North American markets is presently in a downward cycle. If you are buying a home to live in for a long time (7-10 years), it's always a good time. If you are awaiting a better price - wait a while. If you are look for a "fire sale" - they appear to be on now in many US markets. More will come as the North American economy - also in a cycle - slumps downward.
What rescue means for mortgage rates
Bailout of mortgage giants should result in lower mortgage costs and make credit more available. But lending standards will stay tight and risky borrowers will still pay extra fees.
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