Turnaround for Housing in '09?

After watching and listening to this interview I agree 110% with Fred's assessment of the direction of the economy the actions that need to occur to right the ship. In my area the rates can drop as low as you would like but the one factor that is killing the refinance market are appraised values. It does not matter what rates are doing if you cannot get the value out of your house. Secondly, everyone keeps talking about rates and foreclosures. If you can have Fannie and Freddie refinance those who qualify for a refinance they this would be a good move but with so many home owners having their credit ratings drop because of banks freezing the unused debt on their second mortgages a lot of these home owners cannot refinance. This is a direct result of the Big Three's calculations of your credit scores thus with the banks freezing the unused balances your use of these lines of credit has caused your debt usage to increase substantially. If you have a $100,000 second and you are using $25,000 and the banks freeze the remaining $75,000 you are not sitting at a 100% LTV ratio. This simple act has lowered many borrowers credit scores so they cannot refinance no matter how low the rates drop. We need to focus on jobs, let those who cannot afford to make the payments on their houses (which they have been over extended one way or another) to keep them and those who cannot to lose them. Once the economy turns for the better those to have money will be able to invest and those who don't can make enough to validate a new loan. Philip D. Mannlein

After watching and listening to this interview I agree 110% with Fred's assessment of the direction of the economy the actions that need to occur to right the ship. In my area the rates can drop as low as you would like but the one factor that is killing the refinance market are appraised values. It does not matter what rates are doing if you cannot get the value out of your house. Secondly, everyone keeps talking about rates and foreclosures. If you can have Fannie and Freddie refinance those who qualify for a refinance they this would be a good move but with so many home owners having their credit ratings drop because of banks freezing the unused debt on their second mortgages a lot of these home owners cannot refinance. This is a direct result of the Big Three's calculations of your credit scores thus with the banks freezing the unused balances your use of these lines of credit has caused your debt usage to increase substantially. If you have a $100,000 second and you are using $25,000 and the banks freeze the remaining $75,000 you are not sitting at a 100% LTV ratio. This simple act has lowered many borrowers credit scores so they cannot refinance no matter how low the rates drop. We need to focus on jobs, let those who cannot afford to make the payments on their houses (which they have been over extended one way or another) to keep them and those who cannot to lose them. Once the economy turns for the better those to have money will be able to invest and those who don't can make enough to validate a new loan. Philip D. Mannlein