Mortgage Rates Set to Soar? Inside the Fannie & Freddie Shakeup

"Given that Fanny and Freddy's combined capital reserves are growing at a rate of roughly 20 to 25 billion per year this means that it will be at least another 5 years before either entity is ready to be privatized And if we assume the upper capital reserve range of $534 billion that timeline increases to 15 years"

"Higher interest rates from the Fed strong economic growth high inflation and more bond issuance all contribute to a higher 10-year bond yield which means higher interest rates on US mortgages Well uh let's just say it's not looking too good there The Fed seems determined to keep interest rates higher for longer"

"If they do then the effects on the housing market will be almost identical to the privatization of Fanny and Freddy Lower housing prices but also more expensive mortgages Again in the short term this could mean housing prices staying high while mortgage rates rise"

"And that's why today we're going to bring you up to speed on what's been going on and when these changes could come and how they could affect the housing market"