Major Changes Ahead for Housing Market as Fannie Mae and Freddie Mac Face Reform

December 2, 2024



Significant changes are coming to the U.S. housing market as Fannie Mae and Freddie Mac face potential structural reforms. Meanwhile, CMBS delinquencies hit new highs, and China explores its own fundamental property market reforms. These developments signal major shifts ahead for real estate markets both domestically and globally.

Here's what you need to know. Let’s dive in. 

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Analysis: Major Changes Ahead for Fannie Mae and Freddie Mac
The Institutional Risk Analyst
Potential structural changes loom for Fannie Mae and Freddie Mac, the government-sponsored enterprises that underpin the U.S. mortgage market. The analysis suggests their business models may shift significantly, particularly in how they compete with banks and handle mortgage servicing rights - changes that could fundamentally reshape how mortgages are bought and sold in America.

CMBS Delinquency Rate Soars to 6.40% in November
WRE News
The CMBS delinquency rate jumped 42 basis points to 6.40%, with office delinquencies spiking to 10.38%. The surge was driven by significant increases across office, multifamily, and lodging sectors, highlighting growing stress in commercial real estate debt markets.

China Considers Fundamental Property Market Reform
MSN Money
China is exploring significant reforms to its property sector through changes to its household registration system. The potential overhaul could unlock consumer spending and reshape the nation's real estate market, offering a new approach to addressing the ongoing property crisis.

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