If the “The Root Cause Of Our Economic Problems Is The Housing Foreclosure Crisis” as Senator Dodd States, then all the bad mortgages and the $700 Billion Bailout is not necessary.

Or maybe he is ass backwards and it was Wall Street with their aggressive mortgages and the Federal Reserve who encouraged folks to go out and get adjustable rate mortgages and did not do their jobs anyway regardless of Wall Street.

Remember it is the Federal Reserve that monitors and controls the financial markets in the United States!

Maybe Greenspan should not have raised the target rate 17 consecutive sessions after he went out and told everyone to go out an get adjustable rate mortgages.

Look that one up.

Seems like the Federal Reserve failed to do their job, again!

The average time that a home sits on the market when it is for sale is now 11 months.

So what does that mean to you and me? It means nothing. Despite what is said by the professionals, we are still facing the largest portfolio of mortgage resets from right now in May 2008 to September 2008 (Mortgage reset chart).

So what does this really mean? Now we are on to something. Until the underlining mortgage issues are resolved, meaning the homeowners with mortgage resets that become unaffordable, of which only 30% of the affected homeowners are being helped, expect further home depreciation.

CNN.com has stated within the last few weeks that even with all the programs developed by the government, only about 30% of the homeowners can be helped. The reason is obvious. Why does any, for profit banking institution, want to take on the problems of another bank?

And the math is so simple. Add the inflationary pressures of oil, energy and what they mean to consumers discretionary dollars, as well as, the volume of adjustable rate mortgages that are resetting (remember that it takes between 6 months and 12 months to foreclose on a home - every state has their foreclosure laws) and you have a formula saying that we will be having credit and housing deterioration until at least 2010.

Today’s Current Mortgage Interest Rates December 7 2007. Fixed mortgage rates are DOWN from Thursday December 6 2007, while adjustable mortgage rates are DOWN - Today’s 30 Year, is UP and 15 Year Fixed are DOWN - while as the 5/1 is DOWN the 3/1 ARM Mortgage Interest Rates are UP. The 10 year treasury bond is UP to 4.05%.

Many opponents to the Teaser Rate Freeze

Some of the biggest opponents to the teaser rate freeze are home owners and potential home owners. The Bush administration’s plan to give subprime borrowers a break on their mortgages is already catching flak from an unexpected source: other homeowners.

Treasury Secretary Henry Paulson, at a housing conference yesterday, said he is “aggressively pursuing” an agreement with lenders and investor groups to freeze rates on subprime adjustable rate mortgages at their original levels.

The proposal, aimed at helping homeowners who would fall behind in their payments at higher rates, is designed to prevent a surge in foreclosures next year. About 1.5 million subprime adjustable rate mortgages are scheduled to reset to higher rates in 2008.

As outlines of the plan become known, some homeowners are complaining that the effort isn’t fair to borrowers who didn’t overextend themselves. Others argue that the government shouldn’t be involved in perpetuating a mortgage bubble that needs to deflate.

A key question: How far should you go to help borrowers who can’t pay their bills?

“People have to be responsible for their own actions,” says Harry Lancz, a small business owner in Traverse City, Michigan. He holds a pair of fixed rate mortgages, one for his primary residence, which has been for sale for six months and one for a second home in Louisiana. “What are you going to do when their credit cards get due and they can’t pay? Are you going to bail them out on that, too?”

Good point Harry!

Can Loan Mods Keep U.S. Out of Recession?

A pickup in loan modifications could be an important factor in keeping the U.S. economy out of recession, according to Mark Zandi, chief economist of Moody’s Economy.com.

Speaking at a housing forum sponsored by the Office of Thrift Supervision, Mr. Zandi argued that the Federal Reserve Board has to be aggressive in cutting interest rates and said 20% to 30% of adjustable rate mortgages need to be modified before they reset to give the housing and mortgage markets any chance of a recovery. Countrywide Financial chairman and chief executive Angelo Mozilo said he supports the Bush administration’s effort to increase loan modifications.

However, he stressed that the lack of liquidity in the secondary market (except for Fannie Mae, Freddie Mac, and Federal Housing Administration-eligible loans) is putting downward pressure on sales and house prices.

Mr. Mozilo called on the administration to relax its grip on Fannie and Freddie so the two mortgage giants can use their resources to “jump-start” the secondary mortgage market and restore investor confidence.

Today’s Current Mortgage Interest Rates November 29 2007. Fixed mortgage rates are UNCHANGED from Wednesday November 28 2007, while adjustable mortgage rates are UNCHANGED - Today’s 30 Year, is DOWN and 15 Year Fixed are DOWN - while as the 5/1 is UNCHANGED the 3/1 ARM Mortgage Interest Rates is UNCHANGED as well . The 10 year treasury bond is DOWN 3.96%.

Today’s Current Mortgage Interest Rates November 28 2007. Fixed mortgage rates are UNCHANGED from Tuesday November 27 2007, while adjustable mortgage rates are UNCHANGED - Today’s 30 Year, is DOWN and 15 Year Fixed are DOWN - while as the 5/1 is UNCHANGED the 3/1 ARM Mortgage Interest Rates is UNCHANGED as well . The 10 year treasury bond is DOWN to 3.97%.

FHASecure Will Refinance Interest Only Mortgages and Some Option ARMs

The Federal Housing Administration is willing to refinance certain delinquent borrowers with interest-only and payment-option adjustable rate mortgage under the FHASecure program, which is designed to rescue subprime borrowers.

However, the delinquency on an IO or option ARM must be the result of an interest rate reset or the full amortization of the mortgage, according to the Department of Housing and Urban Development.

Shortly after HUD launched FHASecure on September 5, lenders began asking whether IO and option ARMs would be eligible.

Mortgage industry consultant Bud Carter pointed out the revision. “FHA will refinance almost any loan, except a conventional fixed rate mortgage that is delinquent,” he said. Mr. Carter is with Potomac Partners in Washington.