The original Making Home Affordable program was enacted by the US Government by means of the Financial Stability act of 2009, with the intention of blunting the blow foreclosures were causing to the housing market. It contained two components that have had mixed success and was the subject of a recent announcement of additional support.
Questions About Future of Fannie, Freddie, Rise in Industrial Production Pressure Mortgage Pricing – Daily Mortgage Rate Update for August 18th, 2010
First, remember that mortgage pricing hit an all-time best last week after the Fed announced it would further involve itself in the financial markets. Sprinkle into this some questions about the future of Fannie Mae and Freddie Mac (Barnie Frank says they should be abolished, which would seriously hurt the value of their Mortgage-Backed Securities), add the slightest hint of inflation, and some good news about industrial production, and voila! Instant decline in mortgage pricing.
Markets Close Mixed; Durable Goods Orders to Set Tone For Day – Daily Mortgage Rate Update for July 28th, 2010
Mortgage pricing remains at all-time-best levels, and, while it isn’t likely to fall sharply in the immediate future, it needs to be eyed closely. The axiom, what goes up, must come down, hasn’t come into play yet, but it could in the near future.