An end to Freddie Mac and Fannie Mae!?

Yesterday afternoon President Barack Obama talked about the U.S. housing market. In a nut shell he supports reform efforts in Congress that would end Fannie Mae and Freddie Mac “as we know them.” He did emphasize that any restructuring needs to provide adequate opportunity for first time home buyers.

What does this mean to you as a home buyer? For the short-term, nothing. If Congress follows through on plans to shut down Fannie Mae and Freddie Mac, then interest rates will probably rise long term. The question is how much higher? The general consensus is they will rise, but moderately.

Now is still a great time to buy and take advantage of historically low mortgage rates.