Fannie and Freddie reform will happen sooner rather than later
By Matt Joy, Princeton Mortgage Wholesale
Photo by Annie Gray on Unsplash
On Friday I was a little harsh on the “experts” for their predictions on December job report. They were expecting to see an increase anywhere between 190K – 250K… but the report only showed 148K new jobs last month… they were only off a tad, but it was an easy target and I took it. With that being said, one notable number coming from the report was the 30,000 increase in construction jobs. There has been a lot of talk about shortage in housing inventory over the past few years and an increase in construction jobs could mean builders are looking to solve that void in the new year. This is the highest increase in residential construction jobs since 2008. Hopefully, that means we’ll continue to see an uptick in purchase volume… making it even more important to build your network of realtors!
The Wall Street Journal published an excellent article this morning about housing reform in 2018 and the fate of our famed friends Fannie Mae and Freddie Mac. It appears that all signs point toward sweeping change in the coming future which could mean big changes for the mortgage industry. The article goes on to explain that currently, the Senate is working on a bipartisan proposal in which new investors can begin to set up shop and compete with Fannie and Freddie (oh, the proposal also releases the giants from government control… I can’t believe I almost forgot that tidbit). Obviously, this proposal sparks thousands of questions that frankly do not have answers, but we all know one thing is for sure, any sort of change will affect our industry dramatically… heck it’ll change the entire American economy dramatically… as we’ve all seen the impact of change before.
National Championship Prediction: Alabama wins tonight in a tight one 31 – 28. Nick Saban is just too good of coach to lose back to back championship games.
The opinions expressed in this post are the sole view of the writer and do not reflect the opinion of Princeton Mortgage Corporation.