Decoding The Great Real Estate Bubble – Loan Limits
Mortgage loan limits can affect home prices. They’re an important, but often forgotten, part of the story behind The Great Real Estate Bubble and current high home prices.
During the real estate bubble of the 2000s, Fannie Mae and Freddie Mac were involved, one way or another, in 44% of all U.S. mortgage debt outstanding. Both companies were originally created by the U.S. government but somehow the government decided they were private and gave them a lot of free rein.
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