Signs of a strengthening housing market: Fannie Mae sees record profits

The signs continue pointing towards an ongoing (and accelerating) housing recovery.  According to a report from Bloomberg.com, Fannie Mae is set to pay over $59 billion to the Treasury Department.  This has been made possible by two growing treands in the housing market: decreasing numbers of mortgage delinquencies and rising home prices.

After its latest payment, Fannie Mae will have sent the Treasury a total of $95 billion, compared with the $117.1 billion of capital infusions that the company has received. Freddie Mac, which yesterday reported a $4.6 billion profit, will have paid $36 billion, after drawing $72 billion of aid, and Chief Executive Officer Don Layton said it may release $30.1 billion of tax-credit writedowns as soon as next quarter.

To read the rest of the report, click here.