Housing sale of the two US data pessimistic mortgage investment limit has been cancelled
Posted on Feb-29-2008· by china investor
United States Office of Federal Housing Enterprise Oversight said on the 27th will be March 1 lifting of the United States two largest mortgage lender, the Federal National Mortgage Association (Fannie Mae, or Fannie Mae) and Federal Mortgage Corporation (Freddie Mac, or the and the United States) portfolio limits.
Analysts said the move is expected to ease the United States secondary mortgage loan market crunch.
Investment limits will be cancelled because of Fannie Mae and Freddie Mac have broken out after major financial scandals, in 2006 the regulatory authorities of the two entities set up a mortgage loan assets ceiling that the two mortgage portfolio ceiling of 1.4 1 trillion US dollars.
Secondary mortgage loans from the United States after the outbreak of the crisis, Fannie Mae, the company premises, as well as the United States some Democratic members of the United States Congress calling for the regulatory bodies relaxing restrictions to allow the two institutions to attract more mortgage loans assets, compensate for the investors loan-to-market and lack of confidence caused by reduced demand.
The housing market recession of the United States and Fannie Mae mortgage giant wedge of these suffered. February 27 Fannie Mae announced fuels virtually fourth quarter, the fourth quarter of last year the company loss of 3.56 billion US dollars. Loss per share of 3.80 US dollars, far exceeding analyst loss per share of 1.21 dollars forecast.
Fannie Mae CEO Daniel? Madrid said that the loss was largely because prices have fallen substantially and more and more buyers to repay the loan. He believes that, this year, the real estate market is still tough year. For the Government to abolish its investment limit, in Madrid, said the company would proceed with caution, wish to limit losses. Analysts believe that the lifting of the two mortgage investment limit is expected to ease the loan-to-market liquidity crunch.
Fannie Mae and Freddie Mac was created by the United States Congress and was supported by mortgage credit companies, whose principal function is to buy mortgage assets and then re-packaged its bonds for sale to investors, thereby supporting the United States real estate market.
New home sales fell for the United States Department of Commerce announced on the 27th of January new-home sales fell the third consecutive month, fell to a 12-year low.
On a seasonally adjusted basis, January sales of single-family homes fell 2.8 percent annual rate of 588,000 units. Economists had expected the index to 60 million. This is the February 1995 to the lowest level since then sales of 559,000 units. In addition, in December of last year, new home sales dropped 4.0 percent annual rate of 605,000 units.
Analysts pointed out that the United States and the decline in new home sales mortgage banks do with raising the threshold, and high inventory is to discourage buyers, though the Government strongly restore the city, but once again a difficult short-term supply and demand balance situation.
In the company of the report, the demand for housing will continue to shrink recently put pressure on the supply data. Currently, the United States dropped space in the new house started shrinking, but it has not reached the bottom.
In the nearly constant at the bottom of the process, the recent performance of the housing supply data may be even worse. But buyers are increasing the affordability of rental housing prices showed an improvement over the city despite the adjustment would be more lengthy process, but the market is moving in a positive direction.
The company also is expected in the United States will be in the city for a long time remains in the doldrums, but not drastically worsened, especially housing prices will slow adjustment, even in the housing supply and demand will rebound after the continuous decline in prices 2009 will be the earliest possible return of warmer. (Lu Zheng)
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