Home Mortgages and Private Investors

Home mortgages have been tougher to come by in recent months and lenders are tightening their purse strings.  The result of this retraction in available funds for home mortgages is a potential for higher interest rates and a lessening of mortgage products for the consumer. 

So what has caused all the cash hoarding among home mortgage lenders?  Well, the rapid and deep cuts by private investment for mortgage-backed securities is one major reason.  Mortgage lenders are not the only ones hoarding cash, as the private investment community continues to swallow deep losses due to the subprime mortgage meltdown.  It was thought the US government takeover of Fannie and Freddie would alleviate fears and add assurance to mortgage securities, but very few investors are jumping in yet.