Want that $730k House? No Jumbo Loan Guarantees from Fannie and Freddie
KPCC: The Madeline Brand Show
By Madeline Brand
Homes in pricey markets like Los Angeles are likely to drop in value. That's because the federal government will no longer insure large mortgages. Nationwide, about 1-2% of homebuyers are looking at houses that cost more than $600,000. But in Los Angeles, Orange and Ventura counties, a drop in big Fannie and Freddie-backed mortgages could cause home values to fall, and keep some buyers out of the market.
Richard Green of USC's Lusk Center for Real Estate and Chris Thornberg of Beacon Economics join us. Is this the right move now? And, if you're looking to buy, what will it mean for you?
Click the link below for the full interview.