The Federal government steped in this weekend to take over control of Fanny Mae and Freddy Mac. With the new changes in oversight and infusion of billions of government funds, there is already speculation that this takeover could reduce interest rates by as much as 1%. While lending standards will continue to be high and good credit will be required to secure a mortgage loan, it is expected that this infusion of money into the troubled mortgage market will begin to free up money for home purchases.
Yorba Linda real estate could be impacted by this development as lower interest rates combined with already lower home prices will create an opportunities for Yorba Linda home buyers to afford homes they previously could not afford. There has already been an increase of home buying activity in Yorba Linda since the first of the year as lower home prices have attracted buyers to the market who were previously priced out. Lower interest rates will have a significant impact on home buyers monthly payment thus making a home purchase more affordable.