The reason for the takover is to guarantee the availability of home loans, as well as, lower current mortgage rates. Nevertheless,
with the amount of homes on the market, it will not matter if mortgage rates are lowered. Currently, there are too
many
homes for sale on the market.
Some experts are also predicting looser loan restrictions, but are quick to say that this may help in the
short-term housing crisis, however, if the loans default, the taxpayers will be responsible for the debt.
In addition to people facing foreclosure, other things affecting the housing market are the enormous amount of homes
on the current housing market and gaining unemployment. With the recent takeover, some are expecting to see
an increased demand for homes, stimulated by lower rates and more options.
Although I do think that what we are going through at the moment was absolutely necessary, the only thing that can
help the market is for the excess inventory to be sold. Hopefully, the takover will help with that.
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