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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: ild who wrote (15576)	12/22/2003 4:34:58 PM
From: Tradelite	Respond to of 306849

<<The GSEs’ implicit subsidy does not appear to have substantially increased homeownership or homebuilding because the estimated effect of the GSEs on mortgage rates is small.>> Whether this premise holds water or not, I don't know. But it's always been my understanding that Fannie and Freddie were not created to necessarily influence interest rates. They exist to make sure mortgage money is available on a reliable basis to lenders and borrowers in all parts of the country. Without Fan and Fred, some areas probably would be underserved and many borrowers would be out of luck. Just think what it would be like to shop for a competitive rate if mortgage money was only available from the big banks and only in the big cities.