[nish2006]

I couldn't believe what I read in the NY Times this morning about plans to lower mortgage rates for new buyers, after all the chatter on this subject during the week.

If some people have their way, new buyers of homes could get mortgage rates as low as 4.5%, which is great to kickstart sales again. Who loses out? Everyone who works their rear ends off to keep paying their current mortgages (fixed-rate or whatever), since we won't be allowed to refinance at those low rates.

If this goes through, the only option I might have is to sell my home as soon as I get a half-decent price, then look around to buy a new one (or even the same one) with a 4.5% mortgage...!

NYT article : http://www.nytimes.com/2008/12/05/bu...eEwhkg2v4HSz0g

[Ourdreamhouse]

The unfortunate truth is that there's no easy or elegant solution to the housing crisis. The government, correctly realizing that the housing crisis underlies the broader economic problems and desperate to do something, is considering a political solution to an economic problem. If they implement the program you cite, there will be no end of unintended consequences.

It's a sad situation that, at this point, can't be solved without making things worse for many innocent people.

[LaMadden]

I don't see sales going up no matter the interst rate, homes still have to appraise to close.