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New Stimulus plan

By
Real Estate Agent with RE/MAX Hometown

 

 

Bush is hailing the deal with congressional leaders on tax rebates and business tax cuts as "an effective, robust and temporary set of incentives" that will boost not only the U.S. economy, but other world markets..

Congressional leaders announced the deal with the White House today on an economic stimulus package that would give most tax filers refunds of $600 to $1,200, and more if they have children.

House Speaker Nancy Pelosi said Congress would act on the agreement - hammered out in a week of intense negotiations with Republican Leader John A. Boehner and Treasury Secretary Henry Paulson - "at the earliest date, so that those rebate checks will be in the mail."

The checks could be in the mail as early as June!!!

While the sitmulus plan and the recent fed rate cuts have helped to lower the short term rates and rebound the stock market, the long term rates are on the rise. Investors are selling of bonds tied to 30 yr mortgage rates to re-invest in the stock market.

The short of it is that while we are getting help in one area, 30 yr mortgage rates have been on a steep rise for the last two days.