Special Report posted October 4, 2012
A Housing Market Without Fannie Mae and Freddie Mac: The Effect on Housing Starts
This paper tries to capture the effects of interventions by government-sponsored enterprises (GSEs) in the housing market by creating a hypothetical scenario in which one could see what would happen to housing starts without Fannie Mae and Freddie Mac. Housing starts are an especially important indicator of overall strength in the housing sector…
Special Report posted June 11, 2012
A Housing Market Without Fannie Mae and Freddie Mac: Effect on the Homeownership Rate
For decades, Fannie Mae and Freddie Mac followed securitization policies that enabled Americans to make a low down payment when they purchased a house. This study analyzes the impact of affordable lending efforts by government-sponsored entities (GSEs) on national homeownership rate, by race, ethnic group, and census region. The results of this…
Special Report posted April 18, 2012
A Housing Market Without Fannie Mae and Freddie Mac: Effect on Home Prices
Between 2003 and 2006, home prices rose dramatically, but then they fell abruptly in 2007 and thereafter. While many believe that the main cause of the boom was easy access to credit in the form of subsidized interest rates, others have focused on different issues.
Clearly, economists are far from reaching a consensus on the roots of…
WebMemo posted November 21, 2011
Housing Finance: FHA and Lessons Learned from Fannie Mae and Freddie Mac
Congress passed a combined spending proposal (H.R. 2112) that includes an increase in the limits on mortgages held by the Federal Housing Administration (FHA), though Fannie Mae and Freddie Mac are left untouched.
A forthcoming study by The Heritage Foundation demonstrates how federal intervention in the housing market by Fannie and Freddie over the past 10 years…