Fannie Mae Raises Fees.....making sellers and builders squirm more

Well all you greedy speculators and flippers have totally f'd it up for yourselves and everyone else.

Here's another reason why prices will not come back for over a decade. Today, in what's obviously a way to raise capital and a way to finance the foreclosures of all you wannabe's who are going to lose your home when your ARM resets. Fannie Mae will up it's interest rate points charge on loans done to distressed markets effective Oct 1st. This in addition to the charges they added on May after first doing it in December 07. Basically they took the distressed fee and spread it across everyone because congressmen were complaining. That is why rates have been climbing even though the federal reserve has not been raising rates.

Add in essentially the other option; the FHA with it's own fees and well it's not pretty. I think sellers need to understand something....the mortgage market is gone in this country except through the federal government. Yep, the government is now the only lender left. The banks....LOL...they are just the pass thru at this point, if they can't give the loan to the FHA or Fannie and Freddie your not getting one. They have so many foreclosures to deal with that they aren't going to use any of there own money to finance your stainless steel crapshack.


So....basically rates for PRIME buyers in Baltimore are now over 8%. Think about that....a lot of these homes were bought with ARMS that were at 4%. Doubling the interest rate essentially means your never going to get a buyer to stupidly buy your house for more than you paid for it if you bought between 2003-2007. Why? It's not because they don't like the color of the granite you put in, it's because THEY CANNOT AFFORD IT!!!!!