In Washington there is still much speculation about how to further stabilize the nation’s housing market. One plan as outlined in the Wall Street Journal’s Web Site proposes to do the following:
· Lower 30 year mortgage rates to 4.5% (the lowest available rates since the early 1960’s)
· The plan would take advantage of the spread between mortgage rates and yields on government debts
· The lower rates would create a refinance boom (if it is allowed on Refinances) and result in extra money in the pockets of homeowners which would hopefully reduce the need for foreclosure
· The lower rates could also help slow the price reductions we are seeing in the market because home buyers total monthly payments would be reduced allowing them to buy higher priced homes
One thing is for sure, President-elect Barack Obama, has been and will continue to receive a slew of ideas and pleas from everyone from struggling home owners to real estate agents to individuals in the mortgage industry to do whatever is necessary to help the nation’s housing industry recover from the hard hits that 2008 brought. We are very blessed in San Antonio to continue to not feel the devastation that most of the rest of the country is feeling. Keep your head up San Antonio, even more help should be on the way soon!
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