Profit Reports from Mortgage Giants Inspire Housing Market Optimism

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Real Estate Marketing Insider comments on the new reports from two separate lenders that indicate a reason for cautious housing market optimism.

Tobias Nergarden issued his observations on the dual housing market reports that have inspired a certain amount of optimism today, and his opinion is that this will help real estate agents due to real estate prices rising as a result of more people qualifying for loans. As the real estate market looks to be improving, Real Estate Marketing Insider offers their real estate advertising services to home sellers and home buyers.

The last two financial quarters have been very positive for both Fannie Mae and Freddie Mac, two government control mortgage lenders. These two large lending companies have reported profits higher than they have at any time since the 2008 economic meltdown. Company executives are optimistic about rising property sales, but are careful to note that unemployment and ongoing global financial difficulties may slow or stop this upward trend.

Fannie Mae is a nickname for the Federal National Mortgage Association. This corporation was founded towards the end of the Great Depression as part of Franklin D. Roosevelt’s New Deal. Fannie Mae was a large part of the subprime mortgage crisis that began in 2007 and sparked the global financial crisis in 2008. Fannie Mae was one of the corporations saved by a government bailout that cost taxpayers billions of dollars.

Freddie Mac is known as the Federal Home Loan Mortgage Corporation. This is a government sponsored corporation that was created in 1970 as a means to create more secondary options for mortgages. Since Freddie Mac was in serious trouble following the 2007 subprime mortgage crisis, it was taken over by a government conservatorship in 2008.

Mortgage refers to a type of loan that is secured by a piece of real estate. This is the loan type that is often secured in order for people to buy a loan. The word “mortgage” is French in origin and means, “death contract.” This refers to the fact that the loan ends only when the loan is repaid in full or the property is seized in foreclosure.

The 2008 financial meltdown started with the bursting of the housing bubble, but soon spread to affect other industries. This required government bailouts of several of these industries including the auto industry and the banking industry. Unemployment rose and many people lost their homes due to foreclosure, even in the best real estate markets. The crisis spread globally and is considered the worst financial crisis since the Great Depression.

Real Estate Marketing Insider today commented on the optimistic news from Fannie Mae and Freddie Mac that indicated that the real estate market may be in an upswing after two profitable quarters. This optimism is tempered with caution due to the influence of uncontrollable factors like unemployment on the real estate industry.

About Real Estate Marketing Insider:
Real Estate Marketing Insider is a publication based out of La Jolla, California aimed at providing real estate professionals with tips, strategies, and analysis of market trends.

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