Exactly. Fannie Mae and Freddie Mac buy about around 70 percent the mortgages issued by banks. They only by conforming mortgages, meaning conforming to their t

Exactly. Fannie Mae and Freddie Mac buy about around 70 percent the mortgages issued by banks. They only by conforming mortgages, meaning conforming to their terms. https://www.investopedia.com/articles/economics/08/fannie-mae-freddie-mac-credit-crisis.asp https://www.investopedia.com/articles/economics/08/fannie-ma... See also the Federal Housing administration which insures loans. https://www.hud.gov/program_offices/housing/fhahistory https://www.hud.gov/program_offices/housing/fhahistory One can see there really isn't a laissez faire free market at work when it comes to housing in the US. The government is in deep and it's regulated out the ying yang.