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Post by jeffolie on Aug 22, 2007 17:31:41 GMT -6
If the market for Fannie and Freddie mortgages dries up then the housing market will die. Fannie skipped selling paper this month stating there was little demand. This article confirms the trouble for these agencies paper. Without the agencies to securitize mortgages then the economy will die. NEW YORK (Reuters) - Tightening global credit markets have taken a toll on U.S. mortgage-backed securities issued by Fannie Mae and Freddie Mac and it will take more than recent Federal Reserve measures to boost liquidity. Triple-A rated MBS issued by Fannie Mae and Freddie Mac widely perceived as the safest MBS -- are suffering from lack of demand, with market activity dictated by flows from only a handful of participants, particularly money managers, Frank said. RBS Greenwich Capital's Crawford said there have recently been large differences between quotes on prices to buy and prices to sell agency MBS, indicative of a lack of liquidity. www.reuters.com/article/reutersEdge/idUSL226239620070822?pageNumber=1
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Post by beachbumbob on Aug 23, 2007 14:29:41 GMT -6
can we say higher home interest rates a comin??
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