![]()
- UAE Central Bank Stands by Banks Amid Dubai Crisis
- Dubai's Nakheel Seeks Suspension $5.25 Billion in Bonds
- Dubai's Debt Woes Signal New Era for Creditors
- US Shoppers Spent Less Over Black Friday: NRF
- US Senator Opposes Fed Chief Bernanke Renomination
- A Weak IPO Debut for Las Vegas Sands' Macau Unit
- US Treasury Wants Banks to Do More to Ease Mortgages
- Tiger Woods Accepts Full Blame for Car Crash
- Next Week: Cash In Now Or Wait For A Santa Rally?
- Tiger Woods Wants to Protect Family Privacy: Agent
- Portfolio Prep for Next Week: 'Don't Get Crazy'
- U.S. Stocks Fall on Dubai Worries
- Black Friday at Best Buy
- Strategists on Dubai: Avoid 'Rash Moves' Now
- Longer Lines, Fuller Carts This Black Friday
- Dubai Stock Market Fear Has 'Legs': Dennis Gartman
- Obama's Emission Reduction Pledge Paints Future for Autos
- Is Super Bowl Halftime Act Too Old?
MOST SHARED
- US Shoppers Spent Less Over Black Friday: NRF
- South Korea Sees Exports Bouncing, but Risks Remain
- UAE Stocks Tumble on Dubai Debt Woes; Asia Rebounds
- Dubai's Nakheel Seeks Suspension $5.25 Billion in Bonds
- Japan Won't Intervene to Weaken Yen: Finance Minister
- Dubai is Harsh Reminder of Prolonged Global Recovery
- Japan Industrial Output Edges Up But Yen May Weigh
The Treasury Department is considering a plan to boost the depressed housing market by easing mortgage rates on new home loans.
The plan, which is in the development stages, would bring loan rates down as low as 4.5%, a full percentage point lower than the prevailing rates for 30-year fixed mortgages.
The plan, which was first reported by the Wall Street Journal, was confirmed by CNBC.
Under the plan, the Treasury would buy securities underpinning loans guaranteed by Fannie [FNM
Loading...
()
] and Freddie [FRE
Loading...
()
], which are temporarily under the control of the government, as well as those guaranteed by the Federal Housing Administration.
Officials have said that this plan is different from the one that had previously been championed by FDIC’s chairman Sheila Bair.
Video: What the Treasury is considering.
Earlier Wednesday, bond guru Bill Gross told CNBC that the 30-year fixed-rate mortgage could fall as low as 4.5 percent as the economy stabilizes.
"The mortgage rate will come down another 50 to 100 basis points," Pimco's founder and chief investment officer said. "That's basically what the government needs. They need a 4 1/2 percent to 5 percent 30-year rate in order to support home prices and, yes, to encourage refinancing and the process of reliquification within the economy."
Yet many economists say that even with lower mortgage rates, falling home prices and mounting unemployment will keep the housing market in its deepest slump since the Great Depression.
- These four sectors will be the next to lead the market.
- Zhu Zhu Pets are this year's must-have toy, fetching $40 or more on eBay.
- From the why-didn’t-I-think-of-that file, we present Jason Sadler, a man whose job is wearing T-shirts.
- It may be the most unusual guide to business you'll read.
- Shopping for a gadget hound? The choices can be baffling. Here are a few that should be a hit.
- "The Who" will be the halftime act for Super Bowl XLIV on Feb. 7 in Miami. Is the NFL behind the times?













