From Ginnie Mae prospective since the president Theodore Tozer just got back from Japan and all the investors they've spoke with domestically and internationally are all waiting for a Fed rate hike. To actually put billions of dollars to work so they think it's like anything else you have all this money in the sidelines and when the Fed moves you're going to see billions move into the Ginne Mae market which is going to put a cap on how high interest rates can go. The question we get from investor's when's the Fed's going to quit buying because the Fed's are joking off private money from being able to invest into Ginnie Mae market? From Ginnie Mae's prospective it's going to be somewhat muted because there's such demand for Ginne Mae's securities, there needs to be more securities in the near future. Over all a quarter rate hike might not be a big deal for industrial's or any big CEO's sitting watch these moves but will it investment behavior? Theodore Tozer say's it will. Ginnie Mae's biggest concern is since they moved away from bank being main source of mortgage lending in America for the last couple of years to non depositories their biggest concern is equity.In any private corporation cash is king and their concern is bond holders are expecting their P.N.I. payments every month and their resources have to meet those advances. That's the concern is those receivables building up. So they've been working with Wall Street to find ways to make sure those receivables can be used as collateral. It's not a question when can they get paid but if delinquency can go to 10%-20% that's going to be a lot of cash coming out. 

Real estate prices over the next 12 months is it going to put a cap on that? Ginnie Mae thinks the biggest thing is going to help housing prices right now is a limited supply of housing at the moment. The housing stock is actually pretty tight so like anything else that's somewhat going to put a floor under just how low it can go and what interest rates can do. Because again anything that goes on the market there's going to be plenty of buyers because the millennials are starting to buy now. That's going to keep a good forearm on housing prices.