Wednesday, December 5, 2007

The United States Government Is Attempting To Help

I read this article on over the weekend about the US. Government and several large banks (Countrywide, Washington Mutual, Wells Fargo & JP Morgan Chase) trying to develop a plan to extend the lower introductory rate on adjustable rate mortgages to help troubled homeowners avoid foreclosure.

Additionally the article talks about Ben Bernanke's comments in a speech last week that another rate cut may be on the horizon. After October's meeting the consensus was that they would not be lowering the discount rate any further for the remainder of the year. But in light of a continued turmoil in the financial markets, a worsening national housing market, and decreasing consumer confidence, Bernanke has left the door open for another rate cut in Dec 11th, their next scheduled meeting.

I'll be keeping my eyes on both of these situations in the months to come.

Click Here to read the full article

-Steve Nicks

[tags] adjustable rate mortgages, federal funds rate, Desert Ridge real estate [/tags]