Replies to post #767558 on Fannie Mae-No Politics (FNMA)

[Robert from yahoo bd]

"America is a great nation that has risen to beat back the Great Depression, two world wars, a variety of other conflicts, the oil patch crisis, and more leading up to the Great Recession and the COVID-19 crisis. But for the American dream, now threatened by this supply/demand imbalance, actions by federal agencies that played a partial role in the current scenario are also the ones that can help to balance out this dysfunction. And the ones who would be most impacted to the better would be those that need the help from our nation the most as they have been literally priced out of the housing market altogether."

[Robert from yahoo bd]

https://www.google.com/amp/s/www.barrons.com/amp/articles/high-mortgage-rates-10-year-treasuries-51671659050

[navycmdr]

Stevens is a Socialist - and like politicians uses FEAR to get attention ..

at least he is confirming the shortage of supply keeping prices ELEVATED

And yes, there are other challenges, beginning with this terrible dearth in housing supply.

But to use other variables as an excuse to not help here is a difficult argument to justify.

The bottom line is this, we have lost the biggest buyers of MBS in the world (BS FEAR MONGER)

and this could keep rates artificially higher than would be the case in a more

balanced supply versus demand environment. This is a project for the Biden

administration to lead, which should include the NEC, Treasury, the Fed, HUD, and FHFA. (and THEY WILL DO NOTHING)

[Donotunderstand]

767558 - hope that is right
worth a read

not sure of the proposal or how it impacts FHFA - us - etc. -- but the discussion of TWO biggest buyers of MBS paper gone so rates are high is very interesting and logical (not enough demand and MBS paper interest rate must increase to attract what buyers there are - and mortgage rates follow up)

I also like his concise - non partisan - inflation explanation
".......this scenario is the unfortunate outcome of putting too much stimulus into the economy during COVID-19 combined with supply chain shortages that resulted in hyper inflation, leading us to todays scenario.""

again - smart (IMO) person - but the answers seem missing