Housing Plans In Limbo

Government Mulling Options On All Fronts
Fannie Mae and Freddie Mac figured prominently in yesterday’s Daily Wire. In an interview with Reuters, Department of the Treasury's Assistant Secretary for Financial Institutions Michael Barr made it clear that the administration would not immediately alter the way its GSEs are run, including Fannie and Freddie.

One day prior, the U.S. Mortgage Bankers Association had urged the government to break them up into three independently run units. Doing nothing effectively sends the signal that the government prefers to keep a tight rein on all real estate factors until further notice.

In the same interview, Barr also reiterated the administration’s commitment to keeping mortgage rates low. While not commenting on the fate of the $8,000 tax incentive beyond December 1st, most analysts agree that a continuation is on the table for discussion.

Uvestor Opportunity:
It would be very surprising to see interest rates wiggle out of the grips and begin to rise in the next year. This is one marketing lever available to be pulled again and again, as many homeowners will attempt to find more house for their money at a better interest rate in the coming months.

Assuming the economy keeps trudging along and does not dip significantly again over the winter and spring months, this summer proved that buyer confidence is improving, and activity is expected to be brisk once again next year.

Start to make your plans now. Any remodeling or refurbishment needs to be in place before the season starts, as there should remain ample supply to go along with the demand until the foreclosure wave has finally waned.