Replies to post #548926 on Fannie Mae-No Politics (FNMA)

[DJVan57]

I think the Fed announcement will have little actual bearing on GSE’s. Rate cut helps mortgage originators but hurts profitability due to hedging losses. A rate cut would indicate economy is in trouble however and a recession would be bad for business in general though with low rates RE will hold up OK. No rate cut will upset Wall Street but GSE’s don’t trade correlated to market as a whole. Hence the comment as traders using it as a way to possibly manipulate the stock. IMO stock holds around these levels until a real announcement comes out next week.