2. The House has passed the Housing Bill after "W" says he will sign it.
- Mr. Bush was opposed due to the $4B earmarked for local governments to buy and refurbish foreclosed properties--because he considers it a bailout. This kind of plan is already in place near us--and even closer to Mr. Bush himself--in Fairfax County, VA.
- The legislation leaves many unanswered questions, perhaps the biggest being whether it will be sufficient to slow the downward spiral of home prices.
- Average rate for 30-year fixed rose to 6.71 from 6.44 percent last Friday. Average rate f jumbo loans, which cannot be sold to Fannie Mae and Freddie Mac, was 7.8%, the highest since Dec. 2000.
- This is of greatest concern for interest-only mortgages for the first few years of their loans. If these borrowers can't refi into lower-cost loans, many of them will face the prospect of having to pay both interest and principal at higher, adjustable rates.
5. Now that we need him again, he wants to go to Washington.