Fannie and Freddie boost liquidity – good news for homebuyers!
By Don | March 19, 2008
This morning the Federal regulator for Fannie Mae and Freddie Mac made capital requirement changes to those two companies that will (hopefully) allow them to substantially increase the amounts of $$ they can lend to us homebuyers. (See announcement).
Why is this announcement important? Because it helps bring more liquidity to a stopped up/plugged up market. (See my earlier post “Does Fed’s cut yesterday affect home buyers?”)
So this is good news. It should filter down into the marketplace as Fannie and Freddie bring capital infusions into their organizations. It won’t happen overnight, but it’s a start!
Filed under article topic: The Fed & Housing policy
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