Global Stocks Rise on Fannie, Freddie Takeover; Treasuries Drop.
Stocks in Asia jumped this morning after the US goverment announced the takeover, but will the housing market will recover? What does this mean for homeowners?
This sudden turn of events is good news in the short term for the housing market, however we have to realize that this is just the start of a flat growth period. In fact, we’ll still be seeing foreclosures in the near future, which could continue to put downward pressure on existing home sales.
It could take years before we see another massive growth period. Real estate, like many things, works in cycles. Hang tight for a few years and feel the market out, before you jump back into the housing market.