Fannie Mae, Freddie Mac to Back Home Loans of Nearly $1M as Prices Soar

#1

Post by ra7 » Tue, Nov 16, 2021, 2:10 PM UTC

Fannie Mae, Freddie Mac to Back Home Loans of Nearly $1M as Prices Soar
wsj.com

Re: Fannie Mae, Freddie Mac to Back Home Loans of Nearly $1M as Prices Soar

#2

Post by Bostonian » Tue, Nov 16, 2021, 2:51 PM UTC

Can also be titled "Prices Soar as Fannie Mae, Freddie Mac to Back Home Loans of Nearly $1M"

Re: Fannie Mae, Freddie Mac to Back Home Loans of Nearly $1M as Prices Soar

#3

Post by Stubb » Tue, Nov 16, 2021, 3:10 PM UTC

Bostonian wrote: post #2

Can also be titled "Prices Soar as Fannie Mae, Freddie Mac to Back Home Loans of Nearly $1M"

Next you're going to claim that non-dischargeable student loans drive up the price of higher education in the US. Crazy talk!

Re: Fannie Mae, Freddie Mac to Back Home Loans of Nearly $1M as Prices Soar

#4

Post by yardie » Tue, Nov 16, 2021, 3:15 PM UTC

$1M is a $4000/m mortgage requiring a $12000/m income or $140k salary. That seems doable for some professions.

If you are on the fence of buying a home, right now would be a good time to do it. Because they aren't getting cheaper and with this announcement they will almost certainly rise to meet this new, looser qualification.

Re: Fannie Mae, Freddie Mac to Back Home Loans of Nearly $1M as Prices Soar

#5

Post by bradleyjg » Tue, Nov 16, 2021, 3:21 PM UTC

So much for the US being considered right wing. US residential mortgages represent one of the largest examples of socialism in action anywhere with nary a complaint from either US party.

Re: Fannie Mae, Freddie Mac to Back Home Loans of Nearly $1M as Prices Soar

#6

Post by jjoonathan » Tue, Nov 16, 2021, 3:22 PM UTC

> a boon for borrowers

No, it's a boon for owners.

Re: Fannie Mae, Freddie Mac to Back Home Loans of Nearly $1M as Prices Soar

#7

Post by JKCalhoun » Tue, Nov 16, 2021, 3:24 PM UTC

jjoonathan wrote: post #6

> a boon for borrowers No, it's a boon for owners.

Agree. But also, those borrowers are soon-to-be owners.

Re: Fannie Mae, Freddie Mac to Back Home Loans of Nearly $1M as Prices Soar

#8

Post by JKCalhoun » Tue, Nov 16, 2021, 3:26 PM UTC

yardie wrote: post #4

$1M is a $4000/m mortgage requiring a $12000/m income or $140k salary. That seems doable for some professions. If you are on the fence of buying a home, right now would be a good time to do it. Because they aren't getting cheaper and with this announcement they will almost certainly rise to meet this new, looser qualification.

Analysts I've been coming across lately are predicting a single digit softening of the housing market in 2022.

FWIW.

Re: Fannie Mae, Freddie Mac to Back Home Loans of Nearly $1M as Prices Soar

#9

Post by fanniemae » Tue, Nov 16, 2021, 3:27 PM UTC

JKCalhoun wrote: post #7

jjoonathan wrote: post #6

> a boon for borrowers No, it's a boon for owners.

Agree. But also, those borrowers are soon-to-be owners.

And they'll be screwed when the market corrects and the value of the home they just bought drops significantly

Re: Fannie Mae, Freddie Mac to Back Home Loans of Nearly $1M as Prices Soar

#10

Post by JKCalhoun » Tue, Nov 16, 2021, 3:29 PM UTC

Bostonian wrote: post #2

Can also be titled "Prices Soar as Fannie Mae, Freddie Mac to Back Home Loans of Nearly $1M"

Or "Prices Were Already Soaring Despite Fannie Mae, Freddie Mac Not Backing Home Loans of Nearly $1M"

I don't know how wannabe first time home owners are going to catch a break.