Fannie Mae Supersizes You
Last week Fannie Mae and Freddie Mac made it easier for buyers in high-priced areas like New York to get big loans or re-fi their existing ones. Limits for federally backed loans in 70 counties across the U.S. have now been raised to $729,750, according to an article in the Wall Street Journal. The move…
Last week Fannie Mae and Freddie Mac made it easier for buyers in high-priced areas like New York to get big loans or re-fi their existing ones. Limits for federally backed loans in 70 counties across the U.S. have now been raised to $729,750, according to an article in the Wall Street Journal. The move is supposed to encourage lenders to to drop rates on jumbo loans (those over $417,000), which have soared above smaller loan amounts in the wake of the credit crunch. The loan-limit increase, however, will be short-lived: It’s set to expire at the end of this year. Still, this should do more to prop up the economy than tax rebate checks.
Fannie, Freddie Loan Limits Raised [WSJ]
Photo by *andrew.
There was also a lot of happy talk and futile “prop-ups” before the Crash of 1929 and resulting Great Depression. Deja Vu.
The census doesn’t break it down further, thats why. Go ahead and post 2005 houslehold income census data for NYC if you can find it.
“about 10% of households in the NYC area have a houslehold income of 150K or greater”
Funny how you NYC housing bulls use Metro-wide data for income but balk at such data that shows home prices down -5% and dropping because it doesn’t focus on NYC proper. I smell desperation.
“this should do more to prop up the economy”
Sorry. Can’t prop up a price appreciation pyramid scheme. It’s mathematically destined to collapse.
“A pyramid scheme is a non-sustainable business model that involves the exchange of money primarily for enrolling other people into the scheme, usually without any product or service being delivered. It has been known to come under many guises.”
MANY GUISES, one of which is Brookyn real estate.
Read more – http://tinyurl.com/y3gfgl
Don’t get me wrong. Brownstones are worth something, but much less than what’s being asked today. The world class status of NYC, the antique effect, the median income level, the inventory, etc., were already built into the intrinsic values (maybe 2003) of these properties before their excess values blew up. Prices are now on the Jenny Craig (maybe even liposuction) plan.
2005 cenusu – about 10% of households in the NYC area have a houslehold income of 150K or greater. 1 in 10. Thats plenty.
http://factfinder.census.gov/servlet/STTable?_bm=y&-context=st&-qr_name=ACS_2006_EST_G00_S2503&-ds_name=ACS_2006_EST_G00_&-CONTEXT=st&-tree_id=306&-redoLog=false&-geo_id=31200US356203651000&-format=&-_lang=en
“the banks are panicking instead thinking straight”
Fear is the consequence of greed. There’s no free lunch for excess. Were they thinking sraight from 2001 to 2007?
“The US Govt only cares about the wealthy and is in place to shift funds from the poor to the wealthy. Wake up”
Thats funny, becuase the poor pay virtually nothing in Federal income taxes, how exactly is Government shifting their money away to the rich?
the top 10% of earners play the huge bulk of the income tax. Its their money.
11:15 says “Not the role of government to subsidize housing for the rich. ”
Where do you live? The US Govt is solely in place to subsidize the rich.
Whose house got rebuilt in New Orleans? The rich guys beach front mult million $$ pad or the low income guys dilapidated house?
The US Govt only cares about the wealthy and is in place to shift funds from the poor to the wealthy. Wake up.