There are a few things that are driving Fannie Mae (NYSE: FNM) and Freddie Mac (NYSE: FRE) shares this morning. There is word that a new FICO model may actually boost some borrowers’ credit scores. That sounds like a re-lowering of the bar for credit quality. And then there is the news that the Federal Reserve bought $5.6 billion in housing debt late last week, although it is hard to imagine that few of dollars creating a major run of this proportion. Today’s moves resemble more old fashioned day trader and alacritous money trading continuing to flow back in on the bet of a further economic recovery.
Fannie Mae shares are now up over 40% at $1.70 on just about 400 million shares, while Freddie Mac shares are up 25% at $2.18 on almost 200 million shares.
JON C. OGG
August 24, 2009
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