The Treasury is strongly considering taking action on mortgage rates. The Treasury Department will probably intervene directly in the mortgage industry to radically force down rates and stimulate the declining housing market. What is being speculated is that the Treasury would offer to buy securities that finance newly issued loans for home purchases. The caveat is that to participate in the Treasury's program, mortgage lenders would have to set extraordinarily low interest rates, for instance, no more than 4.5 percent for traditional, 30-year fixed-rate loans.
These securities would be purchased mainly from Fannie Mae and Freddie Mac, the financing giants that buy most mortgages from U.S. lenders. The price tag for this ambitious plan and the source of funding is up in the air. One option would be for the Treasury to raise money by issuing bonds to the public at 3 percent interest. This would allow the government to turn a profit because it would be buying securities that pay 4.5 percent.
The plan has not been finalized, but I think there is a good chance it will go forward. Democratic lawmakers who will soon have sizable majorities in the House and Senate, as well as the White House have been advocating for a similar plan.
Recovery in the housing market is key to solving the financial crisis.
Subscribe to:
Post Comments (Atom)
1 comment:
Want $5000 for Giving Away Free Bonuses?
Want to earn thousands this week. All you do is give away a bonus worth a ton of loot. Everyone who views this bonus wants it and takes a free tour. Over 500 people a day are joining. You get paid boatloads for just giving away a bonus they already want. It really doesn't get any easier. We are paying out Huge Commissions to Internet Newbies for doing this one simple thing. So if you are sick of crap that does not pay and you want to earn thousands this week. Come get your huge bonus and take a free tour and duplicate this. It works and we're paying out over 100,000 a week. Right now you are missing your share. So come get it.
WE Give YOU $1000 in FREE ADVERTISING
Sick of hype and stuff that doesn't work? See the difference here. We even Give You $1000 in Free Advertising. Imagine your Ad on all the major search engines and we're paying for it. If you are ready to start earning thousands and want to use our dime to do it, take a free tour today
Stop Trying We Close Your Sales and PAY YOU Period
We have the only system that has internet newbies earning a ton of cash. Why? Because Millionaire internet Marketers do all of your follow up and close all your sales. Don’t worry there are no monthly fees for them to do this. I'm sure you are skeptical so here's a deal. I'll give you a HUGE Bonus for me to Prove this to you. You have nothing to lose but big commissions. Take a free tour and see how we will do the work and pay you a fortune.
http://www.lwsfreedom.com/id/greentitan
Post a Comment