This article first appeared in the PB December 2001
issue of Pro Builder.
Money magazine is a pretty good gauge of the overall climate on Wall Street. So what, according to its December issue, is today’s best stock value? In an article titled "The Rock," it is none other than the housing industry’s financial partner, Fannie Mae.
The stock (symbol FNM) is a buy, Money says, because it is cheap relative to earnings growth of 15%. But the article also touts the housing sector’s overall strength, pointing out that CEO Franklin Raines sees no economic scenario "that keeps him awake at night."
"People will give up a lot of other things before they give up their homes," Raines says. "That is what makes this such a good business to be in."
Advertisement
Related Stories
Single-Family Homes
What Does It Cost to Build a Single-Family Home?
A closer look at the itemized costs in each stage of construction for a single-family home
Builders
A Look at the Boom in Home Builder Stocks During 2023
In 2023, stocks for the 10 biggest U.S. home builders outperformed the S&P 500. What does that say about the housing market?
Financials
Housing Demand Could Rebound in 2024 as Mortgage Rates Ease
The Mortgage Bankers Association predicts lower mortgage rates could bring homebuyers back into the market in 2024
