Rates are still up and down like a roller coaster! I think that we will still see a rate cut on December 11th.
President George W. Bush's plan to freeze interest rates on some subprime mortgages may prove to be a cure that breeds another disease.
When the government comes in and says you have contracted to have this arrangement and you can no longer have it, I think it opens the door for lawsuits.
Bush and Treasury Secretary Henry Paulson yesterday announced an agreement with lenders that will fix rates on some loans for five years. The deal will help borrowers who will fall behind once rates reset to higher levels through July 2010. The plan may force investors in the $6.3 trillion market for home- loan bonds, created by pooling loans and funneling interest payments to bondholders, to revalue their holdings.
I don't think that this rate freeze will help much.....look at FHA Secure! I can honestly say that I haven't put a single person on FHA secure.