Fannie Mae and Freddie Mac
Is there any other reason besides a fear of rising interest rates causing Fannie Mae and Freddie Mac to what appears to be overwhelmingly undervalued right now.
Fannie Forward P/E 8.45; PEG .7 ;3 year earnings growth 16.43, annual dividend 1.94 Projected EPS growth 12.10 next year PEG .63
Freddue forward P/E 8.75. PEG .66 ; 3yr earnings growth 69.47; dividend 1.04, projected eps growth 13.26; next year PEG .54
It seems that there are strong concerns about future home purchases given increased interest rates. However certainly a grwoing economy would help increase home purchases. Additionally aren't we really looking ar a return to normal interest rates of 2% or so from an unsustainable 1%. I didn't really follow the market too closely then but I don't remember a collaspe in the real estate market the last time the Fed raised interest rates, given it was during the dot-com bubble.
It seems like this would be the time to buy here, instead of being behind the curve.
What am I missing?
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