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Fannie Mae, Freddie Mac to Back Home Loans of Nearly $1 Million as Prices Soar
Wall Street Journal ^
| November 16, 2021
| Andrew Ackerman
Posted on 11/16/2021 6:56:37 AM PST by karpov
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Alternative headline: "Prices Soar as Fannie Mae, Freddie Mac to Back Home Loans of Nearly $1 Million"
1
posted on
11/16/2021 6:56:37 AM PST
by
karpov
To: karpov
(Music sting)
“Let’s do the Housing Bubble again!”
2
posted on
11/16/2021 6:57:39 AM PST
by
Rurudyne
(Standup Philosopher)
To: karpov
Totalitarian government is the greediest, most corrupt and murderous force on Earth.
3
posted on
11/16/2021 7:06:29 AM PST
by
E. Pluribus Unum
("Communism is not love. Communism is a hammer which we use to crush the enemy." ― Mao Zedong)
To: Rurudyne
Every recession looks like a housing bubble in retrospect.
People who had jobs and lose them suddenly can’t afford those homes, they were previously qualified for.
4
posted on
11/16/2021 7:08:36 AM PST
by
DannyTN
To: All
5
posted on
11/16/2021 7:11:54 AM PST
by
Liz
(Our side has 8 trillion bullets; the other side doesn't know which bathroom to use.)
To: karpov
“The federal government is about to back mortgages of nearly $1 million for the first time. “
That’s because a ranch style home that sells for $150,000 in Texas, would cost $1,000,000 in California
6
posted on
11/16/2021 7:14:50 AM PST
by
faucetman
(Just the facts, ma'am, Just the facts )
To: karpov
What could possibly go wrong?
7
posted on
11/16/2021 7:14:51 AM PST
by
Renkluaf
To: karpov
And after the bottom falls out of the housing market, the Federal Govt. can simply "forgive" the mortgages, right?
Just like with student loans, right?
Regards,
8
posted on
11/16/2021 7:16:11 AM PST
by
alexander_busek
(Extraordinary claims require extraordinary evidence.)
To: karpov
High prop tax states’ pols and bureaucrats are loving this...
9
posted on
11/16/2021 7:17:00 AM PST
by
mewzilla
(Those aren't masks. They're muzzles. )
To: karpov
Folks, think about all the things the govt insures, let alone pays for.
How good is this insurance? Can they pay out?
10
posted on
11/16/2021 7:17:44 AM PST
by
PeterPrinciple
(Thinking Caps are no longer being issued but there must be a warehouse full of them somewhere.)
To: alexander_busek
And after the bottom falls out of the housing market, the Federal Govt. can simply "forgive" the mortgages, right? Just like with student loans, right? Student loans produced a lot of worthless degrees but those houses are worth something so they will be repo'd.
11
posted on
11/16/2021 7:17:46 AM PST
by
nascarnation
(Let's Go Brandon!)
To: karpov
I was only a freshman in high school when the last housing bubble burst in '08, but at least I know that bullsh!t like this ultimately fueled the bubble and consequent burst.
I would have thought Uncle Joe\, with all of the wisdom he acquired in his five decades of 'leadership', would know what to do to avoid this type of interference in the housing market.
12
posted on
11/16/2021 7:22:49 AM PST
by
millenial4freedom
(The Left: We hate the white male, but we need his money)
To: nascarnation
Student loans produced a lot of worthless degrees but those houses are worth something so they will be repo'd. Yes, I realize that my analogy was faulty, but - won't raising the limit for which Fannie Mae and Freddie Mac can back home loans have a certain inflationary impact upon the housing market? Just as the liberal student loan policy contributed to rising tuitions?
Regards,
13
posted on
11/16/2021 7:25:36 AM PST
by
alexander_busek
(Extraordinary claims require extraordinary evidence.)
To: nascarnation
Student loans produced a lot of worthless degrees but those houses are worth something so they will be repo'd.In NJ a repo takes about 10 years due to all of the last, last, last, last chances given thru multiple mortgage modifications, privledged class dragging of feet, Chap 13, Chap 7. No joke.
So, you are right it is worth something but to actually get it back and on the market is a long, long time.
14
posted on
11/16/2021 7:25:38 AM PST
by
frogjerk
(I will not do business with fascists)
To: nascarnation
I disagree - useless degrees at least help pad the 401Ks and retirement accounts of elite academics such as Fauxcohauntus, Jane Sanders, Ward Churchill, and Janet Napolitano.
Surely, would should all be grateful for that.
15
posted on
11/16/2021 7:26:18 AM PST
by
millenial4freedom
(The Left: We hate the white male, but we need his money)
To: nascarnation
16
posted on
11/16/2021 7:26:45 AM PST
by
millenial4freedom
(The Left: We hate the white male, but we need his money)
To: millenial4freedom
You’re correct.
Part of the “Big Education” cycle.
The last part of which is those high salary academics donate to Democrats.
17
posted on
11/16/2021 7:27:18 AM PST
by
nascarnation
(Let's Go Brandon!)
To: DannyTN
Equity loans on already owned homes? That’s not what Freddy and Fannie do, right?
The cost of housing was rapidly increasing before Covid, and would have continued (though likely at a somewhat lower rate) to rise without Covid. The cause, I would argue, is the rise of a class of destructively stupid people both on the streets and in certain State politics who are throwing a wrench in the works for everyone else and driving shifting of people.
Instead, here we find Freddy and Fannie coming along to again help people take on more new debt which will encourage churn, which will in turn only drive up prices all the more.
And here’s where the bubble comes into it because I would argue that most people invest behind the economic wave behind their justifications for investment, and that in many places they were already overbuilding before the problems with either lumber production or the ports. To enable the continued elevation of prices, which is what this change will do, will further drive a bubble by putting off any correction.
A recession, which is when people tend to pull back with their spending, should actually help to slow down some aspects of a bubble by at least removing some of them from the pool of investors in new construction.
18
posted on
11/16/2021 7:39:07 AM PST
by
Rurudyne
(Standup Philosopher)
To: DannyTN
So the trick is to generate some kind of unemployment supplemental insurance.
Right now, you’re not even allowed to transfer title unless you can show you have fire insurance on your home. It would be an insurance bonanza.
19
posted on
11/16/2021 7:41:44 AM PST
by
Kevmo
(I’m immune from Covid since I don’t watch TV.🤗)
To: alexander_busek
Have they forgiven student loans yet? I thought that was still in the works.
20
posted on
11/16/2021 7:42:37 AM PST
by
Kevmo
(I’m immune from Covid since I don’t watch TV.🤗)
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