What a way to start the New Year, but apparently it is on the minds of the Federal Reserve also. A recent recommendation floated by the Fed suggests having Fannie Mae/Freddie Mac convert more REO’s to rentals.
“The Fiscal Times had an interesting article on the subject that is worth a look:
Call it the Big Selloff—America is headed toward a future in which fewer people own the spaces they call home. The effective homewonershiprate, which excludes borrowers whose homes are underwater, stands at 62 percent, down from 69 percent in 2006, according to a 2010 report by the New York Federal Reserve.
Those trends are just the beginning, concludes a July report from investment bank Morgan Stanley: the United States is becoming a nation of renters and home ownership will keep falling. And that, say some experts, could be good for the country.”
“Good for the country.”
Did you get that? These are probably the same people that told us that high homeownership numbers were good for the country a few years back during the bubble.
The full article –
http://www.thefiscaltimes.com/Articles/2012/01/04/The-New-American-Dream-Rent-Dont-Buy.aspx#page2
