Fannie Mae and Freddie Mac couldn't hack it, and have run behind the apron strings of old Mrs. Federal Government. She's a-tappin' her foot and waggling her finger at these two bad children.
See, what happens is this: They gotta pay off bonds which mature every month, and to do that, they sell NEW bonds. Kinda like robbing Peter to pay Paul back for that time you robbed Paul to pay Peter. Unfortunately, Paul ain't buyin' none of that, so Missy Mae and young Mr. Mac can't gather the money to make more loans. This is a Mr. Poo, meet Mr. Fan situation.
But! Old Mother Treasury has stepped up and decided to back up these two young rapscallions. What does this mean? It's like parents co-signing a loan for their kid's college tuition. It lends credibility, and gives the loaner confidence that the loan will be repaid in full. Or, at least, they hope.
So now, for one reason and some more, interest rates have gone down! Lower interest means more affordable housing! That cute little Tudor you had your eye on that was just out of your price range? Bam! Yours, now! Amazing? Yes! How many houses do you own? NOT ENOUGH! Buy more houses!
... From us.
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