patrick.net

There are no plans to do anything about Fannie and Freddie in the short term. Nothing will be done for at least 5 years. On this issue, Shiller is groslly misinformed and is spreading misinformation, which is quite bad considering Shiller can easily call the personal number of a member of Congress to find out what will happen to Fannie and Freddie if he wished.

Shiller is also misinfomed about the mortage interest deduction. If it is discontinued (and that is a VERY big if) only the top 2% of wage earners would lose it. Shiller makes it sounds like someone making $50,000 a year won't have it anymore. Hopefully Shiller's comments are not being read by a lot of people because they are total garbage.

HousingWatcher says

There are no plans to do anything about Fannie and Freddie in the short term. Nothing will be done for at least 5 years.

http://www.housingwire.com/2011/02/11/treasury-report-advocates-slashing-gse-jumbo-loan-ceiling

Mr.Fantastic says

Ouch.
Housing bulls?

THERE IS NO DECLINE

THE DECLINE IS SEASONAL VARIATION

THE DECLINE IS FLAT, BECAUSE THERE IS NO DECLINE

Los Angeles Renter says

My god, who in their right mind would buy a home at today’s prices when interest rates rise to 10% or more you can’t deduct that interest!

Like a bond valuation problem. The price goes down to meet demand.
At the end ..No big deal ...So what!

thomas.wong1986 says

SF ace says

That will hurt home prices.

Mission statement…

Fannie Mae is a government-sponsored enterprise (GSE) chartered by Congress with a mission to provide liquidity, stability and affordability to the U.S. housing and mortgage markets.
Hurt ? I dont think so. Prices fall making it much easier to buy and finance, and certainly to bring stability to US home market. The further prices fall, the better it gets.

Correct, but according to baby boomers and our corporate overlords, "hurting" = "you're not being gouged enough when you buy a house".

SF ace says

Thomas, logic and reality does not have to reconcile. Fannie/Freddie, MID is not going anywhere for at least 5-7 years if ever. You need to understand who you are dealing with first.

You willing to make a $400k bet on it? There's no economic justification for the MID or Fannie/Freddie. Beyond the politisphere's pressure from the RE lobby fucks, it ought to happen and very well could.

SF ace says

You need to understand who you are dealing with first.

Tax codes get changed all the time.

More discount on the way.

http://news.yahoo.com/s/ap/20110224/ap_on_bi_ge/us_foreclosure_sales

...fewer foreclosed homes were sold in 2010 than were taken back by banks, foreclosure listing firm RealtyTrac Inc. said Thursday.