Today President Bush & Ben Bernanke continue to move toward mending the worries in the stock & housing markets. In a bold statement Bernanke stated they will "act as needed" to assist in easing August's credit upheaval. What this may translate to home buyers is the possibility of the Feds decreasing the current interest rate of 5.25% by as much as a quarter percent. The Feds haven't decreased this rate in four years. With the lending requirements tightening up a lower interest rate is an green light for credit worthy buyers, investors and banks giving a much needed boost to the economy.
President Bush shares Bernanke's sentiment and has created and presented a plan of action.
- Urging Congress to pass legislation to give the FHA more flexibility in helping mortgage holders with sub-prime mortgages. Homeowners with good credit could be eligible to refinance into mortgages insured by the Federal Housing Administration to keep from defaulting.
- Within the lending industry Bush called for enforcing predatory lending laws and to strenghten current lending practices.
Bush confidently predicted we would "safely weather the financial storm." It may seem worse before it gets better according to analysts but predictions are that our economy will stay strong and weather the storm.
Our market has changed and now it is heading in the right direction with responsible lending, interest rates are still low (at or below 6.5% for those with good FICO scores) and housing affordability is in sight for many buyers.