Takeover of Fannie Mae, Freddie Mac won’t help home prices, foreclosures

The Saint ReportProperty Development, saintblog0 Comments

fanniemae The government takeover of Fannie Mae and Freddie Mac likely will help ease mortgage rates for home buyers, say economists, home builders and housing experts. But it won’t cure the housing market’s biggest ailments: falling home prices and rising foreclosures, writes Michael Corkery in the Wall Street Journal.

“This is another marginal step in the right direction,” says Richard DeKaser, an economist at National City Corp., a large Cleveland bank. “But it doesn’t resolve the glut of homes on the market or remove pressure on prices.”

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