Monday, July 14, 2008

Fannie Mae and Freddie Mac analysis.

FED have offered to lend (with 2.25 interest rate) to both mortgage companies. According to Henry Paulson;

"Fannie Mae and Freddie Mac play a central role in our housing finance system and must continue to do so in their current form as shareholder owned companies. Their support for the housing market is particularly important as we work through the current housing correction."

Also Christopher Dodd, chairman of the Senate Banking Committee had been positive about future for both companies. And he refused similarity with IndyMac (IMB) as the company which has been engaged in very bad mortgages.

That's the latest news. From investing point of view today INO posted very good analysis for both mortgage giants Fannie Mae (FNM) and Freddie Mac (FRE). Find out how you could read recent price actions for both stocks.

I am adding my piece of analysis for financial sector measured by SPDR Financial ETF (XLF). It is obvious that current price signals strong oversold conditions accompanying by high volume. The same picture we could see for January and March lows. I expect we'll see bounce in following days.


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