Fannie Mae Turns a Profit

For the first time since the 2008 financial crisis Fannie Mae made a profit.  In Q1 the troubled  mortgage giant earned $2.7 billion dollars. This is welcomed news since for nearly 4 years, and billions of dollars, Fannie Mae has been loosing money.  Last year in Q1 they lost nearly $7 billion.  Out of the $116 billion Fannie Mae has borrower from the US government, they have now repaid $23 billion.  Does this mean the troubles are over for Fannie Mae?  Simply put…no.  It will be many years before the mortgage giant returns to a consistent profit, and much of that depends on the health of the US economy.  Fannie Mae guarantees more than half of all mortgages in the entire country.  Along with other federal housing agencies they provided approximately 90% of all new loans in 2011.  Does this affect mortgage rates for fixed rate and/or adjustable rate mortgage loans?  Unfortunately not however mortgage rates remain stable and at all time lows.