I just got an email from my financial planner urging me to put today's dramatic plunge in the stock market into perspective. Thank goodness I have a strong stomach for market fluctuations. But the one bit of today's news that is most troubling to me is the news about Fannie and Freddie:
Because of the turmoil surrounding Fannie and Freddie, recent borrowers are likely paying nearly 10% more in monthly mortgage payments than they would have.
"Some lenders are really pulling in their horns," said Steve Habetz, a Connecticut mortgage broker. "They're getting scared. They're demanding really clean loan applications with every i dotted and every t crossed."
The troubles for Fannie and Freddie could even affect current mortgage borrowers since they put the housing rescue bills that Congress has been agonizing over for months in jeopardy, according to Zandi, who has testified before the Senate on aspects of the bills.
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What this means to Santa Rosa real estate, both buyers and sellers, is a tighter credit market decreasing the number of qualified buyers. With less buyers, the home inventory will continue to rise. As inventories rise, prices fall.
We're not at the bottom yet.
See the
real estate stats for Santa Rosa for yourself, not a pretty picture.
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