The Government Steps in Again

The Obama Administration announced on Monday that they will be intervening into finance agencies in order to support low mortgage rates.  The program, which involves Fannie Mae and Freddie Mac, will help agencies finance mortgages for first-time homebuyers and develop rental housing.  This is the second attempt by the government to make owning a home for first time homebuyers easier.  Mortgage financing giants Fannie and Freddie will package mortgages made by housing agencies and sell them as bonds to the Treasury Department.  Unlike the $8,000 tax credit, there is no anticipated set cap or time on this plan.  They are waiting it out to see what the demand looks like.  This could be a good or bad thing, but hopefully people will take advantage of this.  It seems as though the government continues to tests the waters because no one really knows how to fix the housing market crisis.  I guess testing the waters is better than just jumping in.   Any progress is good, so lets hope this works.