Fannie Mae and Freddie Mac may soon be made to offer mortgages for homes in 'underserved markets.' A new rule, introduced Tuesday, requires the Federal Housing Finance Agency by federal law to issue a regulation to implement the Duty to Serve requirements specified in the Federal Housing Enterprises Financial Safety and Soundness Act of 1992, as amended by the Housing and Economic Recovery Act of 2008 among both GSEs.
According to a press release from the FHFA, the proposed regulation will require the GSEs to serve three underserved markets including manufactured housing, affordable housing preservation, and rural markets.
As part of the newly introduced rule, both GSEs will have Duty to Serve credit for all transactions that involve a secondary market for mortgages on residential properties in the specified underserved markets.
As much as it may seem home shoppers may be discouraged if the interest rates are higher, a Zillow survey found that the increase will not affect those wanting to buy a home within the next year. The survey showed that 70 percent of consumers that are currently looking for a home or plan to buy a home in the next year will proceed with their intentions even if rates go up to 4 point 5 percent.