The Federal Housing Finance Agency (FHFA) introduced a 97 percent loan-to-value ratio for loans from Fannie Mae and Freddie Mac last October. Fannie’s program launched in in December and Freddie’s is expected to come online this month which would be just in time for spring selling season.
There have been encouraging signs from the FHFA which controls Fannie and Freddie . People no long need to put 20 percent down to have a loan from Fannie and Freddie.
Home builders also have begun to construct lower-priced products to meet the needs of these buyers. This along with easier underwriting standards could be driving the lower priced home market.