Fannie Mae Announces 3.5 Percent Seller Assistance on HomePath

Fannie Mae (NYSE: FNM) announced today that people purchasing a Fannie Mae-owned HomePath property will receive up to 3.5 percent in closing cost assistance or an equivalent amount in their choice of appliances.  The offer is available to any owner-occupant who closes on the purchase of a property listed on HomePath.com before May 1, 2010.

“Attracting qualified buyers to the market and reducing the inventory of vacant homes is critical to stabilizing neighborhoods and helping the market recover.  Many families are taking advantage of the federal homebuyer tax credit to buy a new home so this is a great time for Fannie Mae to offer some additional help,” said Terry Edwards, Executive Vice President of Credit Portfolio Management. [Read the full article]

Freddie Mac (NYSE: FRE) announced today that it auctioned a $1 billion reopening of its 2.875% five-year USD Reference Notes security that matures on February 9, 2015.  The stop yield for the issue, CUSIP 3137EACH0, was 2.714%, priced at 100.748022, or approximately 28.5 Basis points more than five-year U.S. Treasury Notes.  The bid-to-cover ratio was 3.86 to 1.

After the reopening, which was conducted via an Internet-based auction, the outstanding size of the 2.875% five-year Reference Notes security will be $5 billion.  The issue will settle on February 1, 2010, and is listed on the Euro MTF market of the Luxembourg Stock Exchange.

This announcement is not an offer to sell any Freddie Mac securities. [Read the full article]

{loadposition in-article}

Mortgage rates barely moved this week with the 30-year fixed-rate mortgage averaging 4.98 percent in the period ending Jan. 28. McLean-based Freddie Mac (NYSE: FRE) said the 30-year rate is down slightly from last week when it averaged 4.99 percent. Last year at this time, the 30-year loan averaged 5.10 percent. The 15-year fixed-rate mortgage averaged 4.39 percent down slightly from last week when it averaged 4.40 percent. A year ago at this time, the 15-year fixed-rate mortgage averaged 4.80 percent. The 1-year Treasury-indexed adjustable rate mortgage (ARM) averaged 4.29 percent this week, down from last week when it averaged 4.32 percent. At this time last year, the 1-year ARM averaged 4.90 percent. "Last year was rough on the housing market. The number of new one-family housing starts hit a historical low of just under half-a-million units since records began in 1959. Similarly, new home sales were under 400,000 homes, an all-time record since data compilation began in 1963. [Read the full article]

With a large inventory of foreclosed homes acquired during the housing slump, D.C.-based Fannie Mae is offering up to 3.5 percent in closing-cost assistance to potential buyers. Fannie Mae (NYSE: FNM) is the largest U.S. mortgage finance company. As an alternative to a closing-cost credit, Fannie Mae is offering an equivalent amount in the buyer's choice of appliances. "Attracting qualified buyers to the market and reducing the inventory of vacant homes is critical to stabilizing neighborhoods and helping the market recover," said Terry Edwards, executive vice president of credit portfolio management. "Many families are taking advantage of the federal homebuyer tax credit to buy a new home, so this is a great time for Fannie Mae to offer some additional help." The offer is available to any owner-occupant who closes on the purchase of a property listed before May 1, 2010. Properties eligible for this incentive are listed on HomePath.com. [Read the full article]

{loadposition in-article-cramer-large}

You may also like...