The chief executive of the National Association of Home Builders NAHB wants a government program launched to lower interest rates on home loans to 2.9 percent, along with an expanded homebuyer tax credit.
Their proposed program would only be available to new homebuyers, and not those currently struggling to keep up with their monthly payments.
NAHB boss Jerry Howard believes the glut of unsold housing inventory could be off the market in six to 12 months. He believes predicted 4.5 percent mortgage rates aren't enough to really stimulate housing, as evidenced by recent builder promotions that have done little to stem flagging sales.
Although mortgage rates have already fallen to some of the lowest levels in years, many homeowners are still struggling to find affordable refinancing options, thanks to issues like negative equity and harsher underwriting requirements.
What do you think of a proposal for a government subsidized program giving "special rates" just to new home buyers? I would really like to read your opinions in the comment section of this blog.
www.MortgageAdvisor.info & www.GregZaccagni.com
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