Home Loans Up and Up

I just bought an apartment, scared myself as hell wondering how exactly am I going to pay for it. Yes, I budgeted everything and so on, will even have little left over, but worried nerveless...well, I just found out how lucky I should see myself. With Fannie and Freddie in so much trouble right about now, apparently no one can even get a loan. I freely admit that my credit is not perfect, though it is reasonably well off for a young woman who was away at college bombarded by credit card offers, and yes, and ex who new too much personal information...I got my loan, though when I heard about 7% interest I almost had a heart attack...I mean, I did put almost 25% down...what gives? Whatever happened to the zero down and 5% thing that existed just a year or so ago?
Apparently due to the Fannie and Freddie almost or not almost going into the bankruptcy, the lenders are scared out their minds, and who is paying for it? Of course, the people do, and mostly young people. I mean how many of those under 30 have an exceptional credit, 25% down and ability to pay through the roof for the mortgage? Not too many I would think. So what options do those folks have?
Lets take Washington, I live here, so it is something familiar. The housing market is amazing in the sense of things being build left and right, apartments are being converted to condos at the same rate, which means there are less and less apartments for rent. Well, condos are wonderful, when you have buyers for them, but then we come to the problem described above. Young people cannot afford to buy a condo less so a house, and older family people, already have a home or will most certainly buy a house. When houses are being build, it usually means that the economy is good, however, what does it mean when those houses are empty. What will happen to builder who cannot sell what they built, meaning cannot move to another project? He will probably go out of business, constructions will stop and we will know for certain-the economy is in dire trouble, something has to be done. Of course that will in no way help those people who are looking for housing options.
So what exactly is our government doing to help with the situation now? They have allowed Mac and Mae to hold more money and upped the value of loans they can buy. Will that be enough of a rescue or will the companies drown and drag the foreclosure rescue bill now in Senate with it? I don't think it will take too long to find out. It does seem a bit strange that everything bad...alright and tries for good, seem to happen in the last 6 months...elections must be close.