Fannie and Freddie

The move was made by secretary Paulson to calm the greater financial markets and restore confidence in the mortgage / housing sector. Both Fannie and Freddie are now under government conservatorship. There will be a huge capital infusion into the mortgage backed securities. What we expect to see in the next 90 days: With restored confidence we expect to see improved interest rates (today 5.625% is available on 30 year fixed) We also expect to see much stricter underwriting guidelines from Freddie Mac. Fannie Mae had tightened loan approvals on June 1 with their new guidelines; we expect to see Freddie follow suit in the near future. Now is a great time to buy or sell,