Sen. McConnell on CNBC this morning - the GOP plan to fix housing?

no_vaseline_IHB

no_vaseline_IHB

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I am watching this and recording in on my DVR, but I don't have time this morning to totally dissect it. I will post the CNBC video link later.



A new wrinkle in the GOP operating plan was to beat on Obama to "Fix Housing Now". What exactly was the GOP suggesting that Obama do to fix housing outside of what they are doing now? This is the first I've heard of it.



I want to throw a brick and write something snarky about "more broken empty rhetoric from the party of Luddites and Flat Earthers" but if the GOP has a plan that is different from what Obama is going to do (as a side note, the Obama plan to fix housing is doomed fail IMO) this is news to me and I'm interested to hear it.



Anybody got any info?
 
<a href="http://www.foxnews.com/politics/2009/02/02/republicans-stimulus-address-housing-crisis/">Fix Housing First</a>



<blockquote>Under the "Fix Housing First Act" -- an amendment spearheaded by both McConnell and Republican Sen. Lamar Alexander of Tennessee -- new and refinanced mortgages would be available to homeowners for 4 to 4.5 percent.



The amendment will require banks to issue these lower fixed-rate mortgages on primary residences, "both for new homes purchases and for refinances mortgages for responsible homeowners."



And to encourage banks to issue these mortgages, the government will direct Fannie Mae and Freddie Mac to purchase these newly originated loans. Homeowners already holding loans from Fannie and Freddie would also qualify, according to the proposal.</blockquote>


Low interest rates as a way to prop up housing prices. We all know that will work. Nothing to see here just more BS to try to slow the decline.



At least they have one thing right..."We believe that a stimulus bill must fix the main problem first and that's housing"
 
[quote author="trrenter" date=1236983344]<a href="http://www.foxnews.com/politics/2009/02/02/republicans-stimulus-address-housing-crisis/">Fix Housing First</a>



<blockquote>Under the "Fix Housing First Act" -- an amendment spearheaded by both McConnell and Republican Sen. Lamar Alexander of Tennessee -- new and refinanced mortgages would be available to homeowners for 4 to 4.5 percent.



The amendment will require banks to issue these lower fixed-rate mortgages on primary residences, "both for new homes purchases and for refinances mortgages for responsible homeowners."



And to encourage banks to issue these mortgages, the government will direct Fannie Mae and Freddie Mac to purchase these newly originated loans. Homeowners already holding loans from Fannie and Freddie would also qualify, according to the proposal.</blockquote>


Low interest rates as a way to prop up housing prices. We all know that will work. Nothing to see here just more BS to try to slow the decline.



At least they have one thing right..."We believe that a stimulus bill must fix the main problem first and that's housing"</blockquote>


Increase in wages and population is a way to increase home values, not low interest rates. That is one of the factors that helped fuel the housing bubble.

Anything that is done to "artificially" prop up home values other than the two factors I mentioned will only fail.
 
[quote author="BlackVault CM" date=1236984272][quote author="trrenter" date=1236983344]<a href="http://www.foxnews.com/politics/2009/02/02/republicans-stimulus-address-housing-crisis/">Fix Housing First</a>



<blockquote>Under the "Fix Housing First Act" -- an amendment spearheaded by both McConnell and Republican Sen. Lamar Alexander of Tennessee -- new and refinanced mortgages would be available to homeowners for 4 to 4.5 percent.



The amendment will require banks to issue these lower fixed-rate mortgages on primary residences, "both for new homes purchases and for refinances mortgages for responsible homeowners."



And to encourage banks to issue these mortgages, the government will direct Fannie Mae and Freddie Mac to purchase these newly originated loans. Homeowners already holding loans from Fannie and Freddie would also qualify, according to the proposal.</blockquote>


Low interest rates as a way to prop up housing prices. We all know that will work. Nothing to see here just more BS to try to slow the decline.



At least they have one thing right..."We believe that a stimulus bill must fix the main problem first and that's housing"</blockquote>


Increase in wages and population is a way to increase home values, not low interest rates. That is one of the factors that helped fuel the housing bubble.

Anything that is done to "artificially" prop up home values other than the two factors I mentioned will only fail.</blockquote>
Exactly, either increase the demand (increase the buyer pool) and/or decrease the supply in housing. Higher wages coupled with lower unemployment would help. It would be a good idea for local gov'ts to stop issuing building permits to builders in areas with over supply issues.
 
or let the market adjust to affordability. Then people could afford homes at their current incomes and have some discretionary income left to keep the economy flowing.
 
Nothing can or will cause home values to appreciate again until all the bad

loans are flushed from the system. The Interest Only adjustables are still out there

like ticking time bombs. And unless POPULATION starts to increase you can kiss the housing market adios. Especially in the 909/951 Land. A plow or wild fire may be the preffered

method in the IE. And with California just jacking the heck out of use and sales taxes.

And our friends from south of the border not "Vacationing" like they used too.

NOTHING short of a miracle is going to FIX housing demand/prices in So Cal.
 
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