Bush & Bernanke Make the Call

By
Real Estate Agent with Coldwell Banker

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.

 

 

Comments (4)

Cyndee Haydon
Charles Rutenberg Realty - Clearwater, FL
727-710-8035 Clearwater, Beach Short Sales Luxury Condos &Homes
Andrea - that's all good news - thanks for sharing! 
Aug 31, 2007 06:05 AM
Gareth Bourriague
Benchmark Mortgage of Louisiana - Baton Rouge, LA
Benchmark Mortgage

I thought President Bush's speech contained several good ideas.  Whether those ideas are actually implemented is another thing.

I noticed Senator Schumer chimed in immediately afterwards and said that those were all Democratic ideas.

Hmm....

Aug 31, 2007 06:09 AM
Andrea Duane
Coldwell Banker - El Dorado Hills, CA
It's Good To Be Home

Gareth,

I couldn't agree more! I'd like to see more than just lip service on this.

Aug 31, 2007 06:16 AM
David A. Podgursky PA
THE PODGURSKY GROUP @ Re/Max Direct - Boynton Beach, FL
THE PODGURSKY GROUP - Make the Right Move!

the nice thing is that so far there has been more pressure from above rather than attacks below

there is too much negative press hurting the individual practitioners of lending and not enough focusing on:

  • Lenders that offered the programs
  • Lenders that flexed guidelines despite all the red flags
  • Investors who sought the risk
  • Investors that are now not buying any mortgages and worsening the crisis
Aug 31, 2007 06:31 AM