Sep 23, 2008

Freddie & Fannie Rescue Impacts Sellers

According to CNNMoney.com, the federal takeover of Freddie Mac and Fannie Mae will likely translate into lower mortgage rates and greater availability of credit according to experts. Rates could drop 1% from the stubbornly high 6.39% for a 30-year fixed rate mortgage.

Sellers, how does this impact you and why should you care?

Interest rates have a direct impact on a monthly housing payment, so any rate decrease will have a significant positive affect on what a buyer can afford – it could be the difference between buying and not buying or potentially being approved for a higher price range. Good for buyer, good for seller.


With decreased interest rates, a buyer sitting on the sidelines may take this opportunity to finally commit to buying. A “borderline” buyer may receive that little extra buying power they need to buy a home. A “wait for a sweeter deal” buyer may decide the deal is finally sweet enough for them to commit to buying.

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