patrick.net

http://northochousingnews.com/news/the-federal-tripod-thats-slowing-down-the-decline-in-home-values

I call it the federal tripod because there are three financial players or legs that all have federal in their names and act as price supports against market forces pushing down home values. The three federal agencies or groups are; 1) the Federal Reserve, 2) Government Sponsored Enterprises (GSE) which are Fannie Mae and Freddie Mac, and 3) Federal Housing Administration (FHA). Also honorable mentions for acting as price supports go to HAMP, TARP, and federal and state tax incentives. The banks should be included in this mentions as they hold inventory off the market keeping the excess supply from lowering home values, but that’s another post.

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