tag:blogger.com,1999:blog-1864815735750729117.post7957133775080952661..comments2023-10-31T06:28:56.237-07:00Comments on The Housing Chronicles Blog: New home starts fall to all-time lowPatrick Duffyhttp://www.blogger.com/profile/01418865588511944900noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-1864815735750729117.post-39158531385209595662009-01-22T20:23:00.000-08:002009-01-22T20:23:00.000-08:00This economic mess started with the housing market...This economic mess started with the housing market and likely won’t recover until the housing market recovers. Why can’t the banks/lenders drop mortgage rates to the 3.5% area, keeping them in line with the historical margin (1%) above the 10 year treasury? Maybe use some of the $350 billion+ bailout money to help subsidize it, if needed. Maybe get some useful help from the government.<BR/><BR/>If homeowners could refinance their mortgages and save hundreds of dollars every month on their payments it would have a much greater affect on the economy then a one-time check for $500 (which really does nothing), and it wouldn’t cost us taxpayers anything. If people saw rates at 3.5% and knew they were only going to be there for a few months to a year, I believe we would see people stampeding to buy houses.<BR/><BR/>The other thing that could/should be done regarding refinancing is figuring out a way to allow just about everyone to do it. No more Loan Modifications. Just let everyone get their payments to something they can afford and hopefully create extra income for most. Spending would pick up, saving many businesses, creating additional income and ultimately additional tax revenue.<BR/><BR/>Why wouldn’t this work? What am I missing?Anonymousnoreply@blogger.com