Another person familiar with the matter said the rate-freeze plan wouldI wonder if this caught enough people so that spending won't slow in the near future? I know that a 30% or more rise in mortgages is equal to a possible 30% cut in consumer spending by Americans. I think the choice between losing your house and buying some crap will usually come down to keeping your house.
apply to borrowers with loans made at the start of 2005 through July 30 of this
year with rates that are scheduled to rise between Jan. 1, 2008, and July 31,
2010.
This will be interesting to see what will happen after 5 years pass. Hopefully interest rates will be lower then so people can refinance easily. If that isn't the case then an extension means that adjustable rates mortgages are actually a fixed rate mortgage on the cheap. I wonder if people will be taking out less fixed rate mortgages during that 5 year period? In any case I hate when government messes with markets but I guess this is what needs to happen to dodge the recession bullet.
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