Freddie Mac shares decline – Mortgage Market in trouble?

Investors have dumped shares and bonds of Freddie Mac and Fannie Mae thereby reducing the possibility of these 2 mortgage giants restoring the mortgage market. The shares of these 2 companies have dropped to the lowest levels in the past 14 years.

With lenders under the pressure of loan defaults, homebuyers are having a tough time getting mortgages due to stricter lending standards. The effect can be seen with most big lending institutions, IndyMac being one of them.

IndyMac which has been doing real good during the housing boom has now stopped originating most types of home loans. So, times are tough both for lenders as well as homebuyers.