Mortgage rates are falling, now that the federal government is rescuing Fannie Mae and Freddie Mac. The average 30-year loan is now .3 percent cheaper, and may get cheaper still.
That's not the only number heading south. The estimable minds over at Calculated Risk say the value of homes -- and for buyers, the sale price -- should continue to slide. Calculated Risk sees a correction of another 15 to 30 percent on the way. Why? Simple supply and demand. Over the last six years, the site says:
[m]onths of supply increased to 11.2 months. A normal range is 5 to maybe 8 months. Until the months of supply decreases to the normal range, prices will continue to fall.
categories: Fannie and Freddie, Forecasts, Morning Report
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