What Does Fannie, Freddie Rescue Mean to Loudoun County Real Estate

The government stepped in and took over Fannie Mae and Freddie Mac in order to prevent their failure. This has eliminated one huge uncertainty from the interest rate markets (and a lot of other markets) and subsequently we are seeing stocks and bonds rally. But the main thing this move has done is made it cheaper to borrow money to buy a home.

And cheaper money will translate to more buyers with more buying power. If the trend continues, rates will dip below 6% in the near term. And some predict rates can drop as much as 1% because of this rescue.

And coupled with the supply of homes trending lower, this bodes well for home prices in Loudoun County. Look for prices to start moving up once the election results are in.

Here is graph that shows exactly what has happened to the average 30 year fixed mortgage in the last 90 days.

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