Quick Win by the Algorithm

Federal Home Loan Mortgage Corporation, or Freddie Mac (FMCC) and The Federal National Mortgage Association, or Fannie Mae (FNMA)

On November 10th, 2016, the I Know First algorithm had predicted a bullish forecast for Federal Home Loan Mortgage Corporation, or Freddie Mac (FMCC) and The Federal National Mortgage Association, or Fannie Mae (FNMA). FMCC had a signal of 206.33 and a predictability of 0.21. FNMA had a signal of 198.55 and a predictability of 0.21. In accordance with the algorithm, the companies reported long-position capital gains of 60.53% and 60.91% respectively, experiencing a quick win by the algorithm.

Freddie Mac was chartered by Congress in 1970 with a public mission to stabilize the nation’s residential mortgage markets and expand opportunities for homeownership and affordable rental housing. Their statutory mission is to provide liquidity, stability and affordability to the U.S. housing market.

Fannie Mae is a leading source of financing for mortgage lenders, providing access to affordable mortgage financing in all markets at all times. Their financing makes sustainable homeownership and workforce rental housing a reality for millions of Americans. They also help make possible the popular 30-year, fixed-rate mortgage, which provides homeowners with stable, predictable mortgage payments over the life of the loan.

 

Following the presidential election in the United States, mortgage rates jumped from 3.57% last week, to 3.94% this week. This will cause a surge of home sales and refinances on mortgages in order to slow down rates in the housing market. While a 0.37% difference doesn’t seem like a big difference, it can mean the difference of thousands of dollars over the course of a 30-year mortgage.

This bullish forecast on FMCC and FNMA was sent to current I Know First subscribers on November 10th, 2016. 

Before making any trading decisions, consult the latest forecast as the algorithm constantly updates predictions daily. While the algorithm can be used for intra-day trading the predictability tends to become stronger with forecasts over longer time-horizons such as the 1-month, 3-month and 1-year forecasts.

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