"Like earlier efforts from the Federal Deposit Insurance Corp. and housing industry groups, the new plan will make use of interest-rate reductions, loan extensions and so-called principal forbearance, in which part of a mortgage’s principal is deferred to the end of the loan’s term. All these measures will be used to help homeowners reach an affordable monthly payment, the person said. That monthly housing payment, compared with their income, will be the focus of the program, rather than achieving a target interest rate." Full article at Bloomberg.com
"According to reports, the Obama team is hammering out a program that would subsidize mortgages for homeowners in danger of falling behind that are able to meet a "means test" that judges whether they can afford their home. While the plan does little to aid homeowners already late on payments, it could stem the tide of foreclosures and potentially halt the related slide in housing prices that is one of the root causes of the current crisis." Full article at Forbes.com
Check out the charts of both the monthly $VIX spot and today's S&P breakout. The $VIX is at an inflection point trying to break out of it's tight wedge. It could test 38 support if the stimulus bill passes through Congress tomorrow, Fri 13th.
Also for good housing information, charts and data check out the Reuters Housing Market page.
