That is – the reason for that is that home prices are only going to go up. Now, they’ve never gone down nationwide in our – since we’ve been keeping track of this. Franklin Raines Read Quote
If there’s a severe recession, the automatic stabilizers will come into effect, and we will still try to reduce the structural deficit, but we will not try to keep cutting the budget so that we keep worsening a severe recession. Franklin Raines Read Quote
Well, there are about 10 million children that aren’t covered by health insurance. About 3 million qualify for Medicaid but don’t get it, so we’re going to reach out and bring more of those kids into the Medicaid program. Franklin Raines Read Quote
We are shrinking the size of the federal government as a percent of our economy from over 21 percent of the economy to 19 percent of the economy. At the same time, we’re growing the private economy. Franklin Raines Read Quote
Well, now, and there’s – for every dollar the federal government spends, there’s real people on the other side, and so when we talk about reductions that are going to affect providers, that’s going to affect hospitals and doctors and others. Franklin Raines Read Quote
And so Fannie Mae produces very strong results for investors in – when interest rates are high and when interest rates are low, in recession and during booms. Franklin Raines Read Quote
Right now the long-term investors are telling us that they’re not as concerned about inflation and so we’re seeing these rates now move into the marketplace and out to the street – rates that individuals can get. Franklin Raines Read Quote
They flooded liquidity in the marketplace but the mortgage rate is based much more on expectations of inflation. So if the average investor believes that there is inflation coming, they’ll move that rate up. Franklin Raines Read Quote
We think if the economy remains weak that we could see mortgage rates trail down and we think that we could see rates below seven percent into early next year. Franklin Raines Read Quote
Well, we’re just now seeing the reductions in mortgage rates. The mortgage rates are based on the ten-year rate and the Fed controls the overnight or the shorter rates. Franklin Raines Read Quote
