While the Feds still debate on the future of Fannie Mae and Freddie Mac, the real estate market is left wondering what the future holds. The crash of the real estate market was devastating and no 2 ½ years after prices of homes are declining. Now the real estate market faces another hurdle, what happens when 30 year mortgages are no longer available? Fannie and Freddie were the primary lenders of the favored 30 year mortgages but some of them were low quality and led to the crash. Mortgage lenders will likely be reluctant to provide long term mortgages at fixed rates which could prevent many middle class people from buying a home.
Not having a fixed rate mortgage means the month premiums would fluctuate according to interest rates. Fluctuating mortgage payments would make it difficult for people who have modest incomes to meet their monthly payments sending to foreclosure attorneys. The economy has been slow to recover and the future is uncertain despite the optimism of the fed who have boosted it with quantitative easing which expires 6/11. Unemployment is holding steady but many homes are still entering foreclosure and their occupants must employ foreclosure attorneys.
The loss of 30 year mortgages could be another situation where people must walk away from their homes if they can afford to buy one in the first place. The middle and lower income populace may need foreclosure lawyers even more in the future.
