Senator John Ensign's(R-Nev.) housing recovery plan was defeated Thursday in the Senate by a vote of 62-35, largely along party lines.  The proposal was designed to reduce mortgage interest rates to as low as 4% for home buyers and existing homeowners looking to refinance.   

The bill also included incentives to lenders to increase loan modifications for those facing foreclosure and various tax breaks for small businesses as well as low and middle-class families.  

The Democrats believed it would be a windfall for the lending institutions and included tax breaks they did not support.

I was personally hoping this would be passed and coupled with the recent $15,000 tax credit to all home buyers give the housing market a much needed boost.  I am still trying to wrap my mind around why the Democrats would not support this bill.

What are your thoughts?  Am I alone in this thinking or were you hoping this would be included in the "Spendulus Package"?

Troy Batson is a Licensed Broker in the State of Oregon ~ troybatson.com ~ Duke Warner Realty ~ Bend, Oregon Real Estate