Tags: Bank of America Corp., Banks, Citigroup Inc., Debt Plan, Deposit Insurance Corp., distressed mortgage securities, economy, government, investors, Mortgage Backed Securities, mortgage securities, PPIP, PPIP funds, public and private money, Public-Private Investment Program, treasury secretary, US Treasury Department
The US Treasury Department may initiate its program in order to encourage purchases of mortgage-backed securities from banks with about $20 billion in public and private money. This has been down as much as $100 billion from what it was announced in March, it was said by two people who were familiar with the matter.
The treasury has planned to provide $1.1 billion in capital to eight to 10 money managers which it will pick for the Public-Private Investment Program, according to the people, who have asked that it should not be identified before the details are announced. $1.1 billion each will be raised by the firms for funds to buy distressed mortgage securities. This is less than what they had expected from the government to support. About $10 billion in government-backed loans is also included in the plan.
Read the full story
Tags: Fed, Federal Reserve, freddie Mac, high-grade corporate bonds, home re-sales, inflation, Inflationary Pressure, investors, Mortgage Backed Securities, Mortgage Bankers Association’s index, Mortgage Rates, National Association of Realtors, purchasing mortgage-backed securities, Real Estate, refinance, rise in prices, U.S. mortgage applications, U.S. mortgage rates, U.S. Mortgage Rates Drop, U.S. Mortgage Rates Drop to 5.32%, yields on treasuries
This week in the US mortgage rates fell. Easing concern the Federal Reserve decision to lower down the mortgage rates by purchasing mortgage-backed securities was losing momentum.
It was said by mortgage buyer Freddie Mac of McLean, Virginia, in a statement that the average 30-year rate dropped to 5.32% which was 5.42%.While the 15-year rate was at 4.77 %.
Efforts are being made by Federal Reserve Chairman Ben S. Bernanke to lower down the borrowing costs. He has got a $1.25 trillion program to purchase securities backed by home loans.
Read the full story
Tags: Affordability, affordability programs, bad mortgages, Banks, buyers, Credit rating agencies, Debt, financial speculation, foreclosures, GDP, government, gross domestic product, house prices, investment, investors, mortgage investment, Real Estate, salaries, Unemployment, US economy, US Housing Crash
It is not possible to recover the US economy unless house prices are allowed to fall to such levels that can be easily paid by an individual on a normal salary. Housing “affordability” programs are the prime evil of the economy due to which debt is encouraged; this makes prices higher, not lower.
True Affordability
What true affordability means is not more debt but it rather means lower prices. More debt has been created by the government’s false affordability programs that can ever possibly be repaid. Credit rating agencies are speaking falsely about the value of this debt, scaring off investors.
The economy will work again when house prices finally fall to affordable levels, instead of investing on financial speculation, there will be investment based on real production, jobs will be created, and people will earn and spent money.
Read the full story
