Well, it took about 45 days for the bailout bill to open the door for the takeover by the federal government of Fannie Mae and Freddie Mac.  I can’t say that I was particularly surprised at Sunday’s announcement.

As noted in Tami Luhby’s recent article at CNNMoney.com, interest rates have already started to fall as the world markets responded positively to the announcement.  Now, I’m not going to say that’s bad news-for those who are buying a home, it’s just one more great reason to take the leap.  I mean, home prices are down, there are some great homes on the market, and now the interest rates have gotten more favorable.  Heck, I’m the first one to encourage people to buy a home.

I am somewhat concerned about Luhby’s note that the bailout is “aimed at making mortgages easier to obtain and afford.”  Not so many years ago, Congress encouraged lenders to make mortgages available to more people…which eventually led to the recent market downturn.  I’m not sure that opening that door is necessarily the best way to solve the problem long-term despite the fees and restrictons mentioned in the CNNMoney article.

From the beginning, I have believed that in a free market the housing difficulties we have faced would eventually correct themselves-even if it took some rocky times in order to get us there.  Whether this bailout will delay or derail that natural recovery is unknown at this time.

I guess it comes down to this: our economy has been a lot worse.  Yes, I remember the late 70s (despite my unbelievably youthful appearance).  Six percent mortgages may be higher than the rates we saw two years ago, but they’re a far cry from the 15% or more that accompanied the questionable era that brought us-gulp-Gremlins, disco, perms and Smoky & The Bandit.  It goes without saying that we look better, and the fact is, our economy is screaming along in comparison.

For folks in certain U.S. regions that have been mentioned here before (California, Florida, Nevada, Michigan, etc.) life is pretty tough right now.  But there are a lot of great cities (including many right here in the Lone Star State) that aren’t seeing that kind of downturn.

Again, just keep in mind that there are still a lot of reasons to buy a home and there’s more information available to homebuyers than ever before, thanks to the transparency that’s provided by RateWindow™.  And for those looking for long-term investment properties, now is definitely the time to buy, when home prices have lowered and sellers are willing to negotiate.  After all, history has always shown that real estate is the best way to build long-term wealth, provided you do it wisely.

So for now, I’m taking a wait-and-see attitude, keeping my fingers crossed, my hair unpermed, and hoping for the best.  Now if I could just summon the courage to purge the Bee Gee’s out of my CD collection…

This blog is intended for informational/entertainment purposes only and is not meant to provide any financial or legal advice.