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Real Estate News Releases
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(EMAILWIRE.COM, July 17, 2008 )
SAN FRANCISCO, CA – Mortgage finance companies Fannie Mae and Freddie Mac experience severe stock price volatility as U.S. government considers moves to shore up operations at the companies that have suffered, like the nation, from the subprime mortgage crisis and the attendant rash of foreclosures.
By the end of trading on the NYSE on Monday, July 14 Fannie Mae (FNM) and Freddie Mac (FRE) were down respectively 5% and 8.3% from their prices at the opening of the market on Monday. The two mortgage related companies had seen gains earlier in the day as Congress signaled that it would facilitate the lending of capital to the two mortgage titans.
Both companies had lost over 40% of their total market capitalization last week as fears arose regarding their ability to borrow money to keep operations going continuously. Treasury Secretary Henry Paulson, in explaining how the Federal Reserve might lend money to the two companies that together back approximately 50% of all existing American home mortgage loans., requested that credit be issued to them in a manner similar to the way the government lends to certain banks.
One option that the government is said to be considering in addition to providing credit to Fannie and Freddie is a stock purchase plan that could put the US government in a strong position of ownership and control of the organizations day-to-day operations.
Despite the attention on the federal level towards fixing the housing crisis many consumers still appear to doubt that the real estate market drops that have been affecting lenders great and small are over. “Many people who want to buy real estate, whether it’s a single family home or a commercial property, are sitting on the sidelines, but there are bargains to be had, even in a falling market,” said Patrick McGilvray, real estate investor and president of Sacramento, CA based www.TheHomeBuyingCenter.com.
McGilvray added, “the problem with most investors who try to time the bottom of any market is that they often miss the recovery by crucial weeks to months. For the average consumer who wants to buy residential real estate to live in, the time to start shopping is now.”
The National Association of Realtors placed the following response to the government’s intended actions in support of Fannie and Freddie: “We support the federal government’s actions and authorization to help ensure the ability of Fannie Mae and Freddie Mac to promote the availability of home mortgage credit during a period of stress in the financial markets. Fannie and Freddie play a central role in our housing finance system, and we agree that they must continue to do so as we work through the current housing correction.”
www.TheHomeBuyingCenter.com
Patrick McGilvray
916-821-6200
patrick @ thehomebuyingcenter.com 
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