Will 3% Mortgages Boost the Housing Market?

Will 3% Mortgages Boost the Housing Market?

Fannie Mae and Freddie Mac, government-sponsored enterprises, detailed guidelines this week to buy loans from lenders made to borrowers at up to a 97% loan-to-value ratio. As a result of this increase in LTV, borrowers will be able to obtain mortgage loans with as low as a 3% down payment under some Fannie and Freddie-backed programs. This move is expected to have its biggest impact on the first-time homebuyer and provide a boost to the moribund housing market.

Read More

Previous Which Public Homebuilders are Best Positioned for 2015?
Next The Case for Homebuilding Stocks

About author

Michael Anderson
Michael Anderson 249 posts

Over the course of his 30-year career, Michael Anderson has worked in the residential development industry in the Pacific Northwest, Northern California and Southern California. He has acquired residential land in excess of $300M for both land development and homebuilding entities and has overseen the construction of approximately 2500 homes. Currently, in semi-retirement, and based out of Newport Beach, CA, Michael continues to invest in and stay abreast of the land markets.

View all posts by this author →

You might also like

Housing Market

Return of the First-Time Homebuyer?

Lawrence Yun, Chief Economist of the National Association of Realtors, sees 2015 as a potential turnaround point for the return of the first-time homebuyer. While the recovery thus far has

Housing Market

This Forecast isn’t Pretty for Southern California Home Prices

While many housing forecasts call for moderate price gains in 2017, an outlook from Clear Capital may be one of the most circumspect on the prospects for Southern California real