At the start of this month, Fannie Mae changed its policy regarding declining markets. Previously if you were in a declining market you had to put 10% down in order to obtain a loan. Now the policy has changed so that regardless of the state of the local real estate market buyers only need to put 5% down, i.e. they can obtain a 95% mortgage instead of a 90% mortgage. This change will obviously make it easier for first time buyers to enter the market and hopefully create an increased demand at the low end of the market.