As home prices continue to decline, Fannie Mae expects to be negatively effected, its chief executive told CNBC on Tuesday.
CNBC.com
“We expect that home prices will continue to deteriorate though the balance of the third quarter, then stabilize when we start to see a gentle recovery in the beginning of next year," said Michael Williams, CEO and president of Fannie Mae.
"That’s a longer period of time than we originally anticipated and a little deeper decline than we thought.”
For the first quarter, U.S. home values experienced the biggest drop since late 2008, according to real estate data firm Zillow.
The mortgage giant recently said in its first quarter results that it has requested $8.5 billion from the government to stay afloat by eliminating its deficit.