9 Stories

The Government Needs to Start Buying Mortgages

Economists Joseph Stiglitz and Mark Zandi have a plan to fix the housing market

(Newser) - Five years after the mortgage crisis began, housing is still one of the biggest factors dragging the economy down. There's just one option left, economists Joseph Stiglitz and Mark Zandi write in the New York Times : Mass refinancing. "Well over half of all American homeowners with mortgages are... More »

US May Let Millions Refinance at 4%

Proposal could save homeowners $85B annually

(Newser) - Help could be on the way for struggling homeowners with government-backed mortgages: The Obama administration is considering a proposal that would allow such homeowners to refinance their mortgages at today's interest rates, which hover around a low 4%. Many homeowners can’t currently refinance because they owe more than... More »

Krugman: We're Not Bouncing Back

'Policy-makers are in denial'

(Newser) - You know that recovery officials promise is underway? It's not happening, scoffs Paul Krugman, and he blames federal officials' reluctance to take responsibility. "This isn’t a recovery, in any sense that matters. And policy-makers should be doing everything they can to change that fact," he writes in... More »

Foreclosures Rose 24% in First Quarter

Rate expected to rise through the summer

(Newser) - The number of American households threatened with losing their homes grew 24% in the first 3 months of this year and is poised to rise further as major lenders restart foreclosures after a temporary moratorium, figures out today show. Though the Obama administration has invested $75 billion to help up... More »

All Options on Table in Fight to Halt Foreclosure

Obama considering moratorium, gov't-sponsored refinancing

(Newser) - The Obama administration is considering plans to stem the tide of foreclosures ranging from doubling the mortgage interest deduction to a six-month foreclosure moratorium to government-sponsored refinancing, reports the Los Angeles Times. But a strategy is still at least several weeks away and, regardless of what bandages are applied, “... More »

Mortgage Refinancing Rush Continues Into New Year

30-year fixed mortgage rate is lowest on record

(Newser) - Homeowners continue to scramble for refinancing in order to lock in currently low interest rates, MarketWatch reports, with applications jumping 25.6% last week, to the highest level since June 2003. The average interest rate on a 30-year fixed-rate mortgage fell 0.10% for the week ending Jan. 9, to... More »

Hey, Gen-Xers, Housing Mess Is Your Fault

They borrowed too much to avoid fractured family of their youth

(Newser) - Stung by the divorces and TV dinners of their youth, Gen-Xers spent whatever it took to make a happy home for themselves and their kids—even when they couldn't afford it, writes Susan Gregory Thomas in Babble. OK, that may be "harsh and exaggerated," she notes. But from... More »

Mortgage-Rate Drop Sets off Refinancing Rush

The biggest rate drop in seven years sends homeowners to banks looking for deals

(Newser) - The biggest one-day decline in mortgage rates in 7 years set off a frenzy of refinancing yesterday, as homeowners who'd been waiting for a bargain jumped into the market. The nearly one-point decline was prompted by the Fed's $600 billion commitment to buy mortgage-backed securities, reports Bloomberg. "It's the... More »

GM-Chrysler Inch Closer to Deal

Merger would create world's largest automaker

(Newser) - General Motors and Chrysler have ironed out the major issues in their proposed merger, bringing the troubled giants a step closer to becoming the world's largest automaker. The deal's final form will depend on financing and government support—of which GM is requesting $10 billion—but both companies agree GM... More »

9 Stories