Mortgage Monday: 2011 Mortgage Market

Mortgage Market for 2011

What can you expect from the mortgage market in 2011? An article on MSN Money explores eight keys to the 2011 mortgage market.

1. The new consumer financial protection bureau will start operating. By July 21, the structure to promote what may be a sweeping overhaul of mortgage products, processes and disclosures will be put in place.

2. Fannie Mae and Freddie Mac will change . . . maybe. Reforming the government-sponsored enterprises has been an on-again, off-again crusade for the last couple of administrations. To be sure, it’s a love-hate relationship . The GSE’s have totally distorted the mortgage market, but without them, there would be no mortgage market to distort. They have eaten tens of billions of taxpayer funds but remain perhaps the key support for millions of homebuyers and homeowners.

3. The economy improves. If you want to know what will happen to mortgage rates in 2011, watch what happens to the economy. The economy has put in about six quarters on the positive side of the economic ledger and Federal Reserve stimulus and the recent tax agreement seem likely to ensure that growth continues on an upward track in 2011.

To be continued.

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