The Fed announced that it is considering a more direct intervention in the housing market with a plan that could drive NEW mortgage rates as low as 4.5%. Low interest rates on NEW mortgages are certain to result in additional buying activity, but will it be enough to make a difference? If the Fed limits these low rate purchase loans to owner occupied housing only, then it may not be enough.
Articles Tagged ‘bailout’
Federal Bailout Redux
Earlier this week the Federal Reserve announced a massive $800 billion program intended to unfreeze credit markets. The program includes $600 billion to buy mortgage-backed assets. This plan sound vaguely familiar? The massive purchase of mortgage-backed assets is intended to stimulate the housing market
Bailout is not much help for homeowners
The infamous Wall Street Bailout was signed into law several days ago. The intent of the bill is to provide greater access to credit, hold down interest rates, and prevent a sharp increase in unemployment. What does the bill do for distressed homeowners?