Just as Kirk Nace has been telling us for far too long, the costs of borrowing for mortgages is going to go up. The Federal Government currently backs approximately 99% of all new loans being originated, in order for them to reduce this to 50% or less HUGE changes will have to take place and while the Federal Government has been content to spend taxpayer dollars throughout the course of the US housing market collapse, it's probably a pretty safe bet that the private sector will be far more concerned about making loans that actually make sense. This means higher points, fees, interest rates and down payments. As we've been told this will further soften demand in an already weak housing market.
Click on the title above or the link below to review the entire Reuters and Bloomberg articles.
http://www.reuters.com/article/2011/02/09/us-usa-housing-idUSTRE70R80420110209?feedType=RSS&feedName=domesticNews
http://www.bloomberg.com/news/2011-02-09/fannie-mae-freddie-mac-could-be-phased-out-under-treasury-s-housing-plan.html
