On December 24 the Obama administration made a decision to cover an unlimited amount of losses at the mortgage finance giants, Fannie Mae and Freddie Mac through 2012. The WSJ quotes the Treasury Department as saying that, “unlimited access to bailout funds through 2012 was necessary for preserving the continuing strength and stability of the mortgage market.” In a separate article linked above the WSJ reports that the 10 year treasury is heading higher and that 30 year mortgage rates are expected to follow suit this spring as the government mortgage-purchase program comes to a close.
A December 28 WSJ article reports that, “Today the government, directly or indirectly, underwrites nine of every 10 new residential mortgages, nearly twice the percentage before the crisis.” Regarding Charlotte homes, if 9 of 10 loans are conforming to the limit of $416,000 then home markets which sell in this price range and below should continue to solidify, however the secondary market above this loan limit remains less certain.
My wife Karen and I received your letter stating you would appreciate feedback on our recent experience with Helen Adams Realty and specifically Dot Munson who was our selling agent.