Welcome to DU!
The truly grassroots left-of-center political community where regular people, not algorithms, drive the discussions and set the standards.
Join the community:
Create a free account
Support DU (and get rid of ads!):
Become a Star Member
Latest Breaking News
General Discussion
The DU Lounge
All Forums
Issue Forums
Culture Forums
Alliance Forums
Region Forums
Support Forums
Help & Search
Economy
In reply to the discussion: STOCK MARKET WATCH -- Monday, 20 October 2014 [View all]xchrom
(108,903 posts)12. There's A Big Stimulus Coming Together For America's Homebuyers
http://www.businessinsider.com/fannie-freddie-fed-housing-stimulus-2014-10
The big dive in the 10-year Treasury bond yield last week pushed the 30-year mortgage rate below 4.00% for the first time since May 28, 2013. That drop could revive mortgage refinancing activity, providing another windfall for consumers. In addition, housing starts, which have stalled around 1.0 million units for the past year, might move higher.
Even more stimulative for housing activity may be the governments push to allow Fannie Mae and Freddie Mac to lower lending standards and restrictions on borrowers with weak credit. Lenders would also be protected from claims of making bad loans, according to a 10/17 WSJ article. Déjà vu all over again: The government encouraged sub-prime lending during the previous decade, and it ended very badly. In any event, here we go again: The two biggest assemblers of mortgage-backed securities--that will now be explicitly guaranteed by the government rather than implicitly, as before--are considering programs that would make it easier for lenders to offer mortgages with down payments of as little as 3% for some borrowers.
God help us! More likely, when the next batch of subprime mortgages hits the fan, Fed Chair Janet Yellen will help us. Shell do it with QE-10. Thank goodness for Fannie, Freddie, and Feddie.
Read more: http://blog.yardeni.com/2014/10/fannie-freddie-and-feddie-doing-it.html#ixzz3GgPTnrP7
*** demeter has reported the same from a different article
The big dive in the 10-year Treasury bond yield last week pushed the 30-year mortgage rate below 4.00% for the first time since May 28, 2013. That drop could revive mortgage refinancing activity, providing another windfall for consumers. In addition, housing starts, which have stalled around 1.0 million units for the past year, might move higher.
Even more stimulative for housing activity may be the governments push to allow Fannie Mae and Freddie Mac to lower lending standards and restrictions on borrowers with weak credit. Lenders would also be protected from claims of making bad loans, according to a 10/17 WSJ article. Déjà vu all over again: The government encouraged sub-prime lending during the previous decade, and it ended very badly. In any event, here we go again: The two biggest assemblers of mortgage-backed securities--that will now be explicitly guaranteed by the government rather than implicitly, as before--are considering programs that would make it easier for lenders to offer mortgages with down payments of as little as 3% for some borrowers.
God help us! More likely, when the next batch of subprime mortgages hits the fan, Fed Chair Janet Yellen will help us. Shell do it with QE-10. Thank goodness for Fannie, Freddie, and Feddie.
Read more: http://blog.yardeni.com/2014/10/fannie-freddie-and-feddie-doing-it.html#ixzz3GgPTnrP7
*** demeter has reported the same from a different article
Edit history
Please sign in to view edit histories.
37 replies
= new reply since forum marked as read
Highlight:
NoneDon't highlight anything
5 newestHighlight 5 most recent replies
RecommendedHighlight replies with 5 or more recommendations
Laura Poitras on Snowden and the Total Information Capture Approach to Surveillance
Demeter
Oct 2014
#13
LinkedIn’s “Economic Graph” as Algorithmic, Global Labor Brokerage and Panopticon
Demeter
Oct 2014
#16
Dallas hospital where one man died of Ebola and two more contracted the deadly virus has become a 'g
Demeter
Oct 2014
#22
Asian Infrastructure Investment Bank Opposed By US, Seen As Attempt To Boost Chinese Influence
Demeter
Oct 2014
#28
Frank Rich's (future) daughter-in-law, author Kathleen Hale, admits to stalking reviewer
Tansy_Gold
Oct 2014
#32