Wednesday, August 18, 2010

Future of Housing Conference

Yesterday the Treasury Department held its "Future of Housing Conference" on Capitol Hill with the main theme focusing on some type of limited government assistance in the housing market, but a scaled back version.

Bill Gross, who oversees the world's largest bond fund called for a huge refinance program to slash home loan rates to current levels, which would boost consumer spending by $50 to 60 billion and could lift home prices by 5% to 10%.

Part of the plan he proposed was to have Fanny May and Freddy Mac lower interest rates on their borrowers that are in good standings to a 4% interest rate. This would be helpful to borrowers that can not refinance do to equity or other reasons.

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