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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