FEDERAL RESERVE TO PUMP $600 BILLION INTO HOUSING

It is about time they deal with the issue: Supply and Demand of Housing. That is it. To stop the bleeding, the supply of homes coming to the market must be slowed. Demand is back as buyers purchase homes at values not seen in nearly 5 years. Value is back. But the problem is there are still too many homes coming to the market and they are fighting for the buyers with their price. Here in Phoenix, one big problem is Short Sales. The government must stream line short sales now. Due to the long waiting period to get any type of answer, I am talking 3 to 8 months, buyers and Realtors are avoiding Short Sales. What does that do, the Short Sales must drop to outrageously low prices to attract a buyer. This drives the whole market lower! This is the $6 million dollar question; how to stabilize the Short Sales before the drive all values to ZERO! For example, single family home at Tatum and Bell, selling in the DAY for $400K, last sale $240K, NEW SHORT SALE LISTED at $175K. That is tomorrow's comp.
Just My Opinion...Jeff Cameron


Fed Unveils Plan to Support Mortgages, Consumer Credit
Topics:Interest Rates Consumers Federal Reserve Economy (Global) Economy (U.S.)
Reuters and CNBC.com 25 Nov 2008 08:27 AM ET
The U.S. Federal Reserve, in another massive life-support intervention for the U.S. financial system, Tuesday announced a $600 billion program to buy mortgage-related debt and securities and a $200 billion facility to buy consumer debt securities.
The U.S. central bank said it would buy up to $100 billion in debt issued by Fannie Mae, Freddie Mac, and the Federal Home Loan Banks, the government-sponsored mortgage finance
enterprises.
The Fed also said it would buy up to $500 billion in mortgage-backed securities backed by Fannie Mae, Freddie Mac, and Ginnie Mae.
The move is intended to strike at the heart of U.S. economic woes, the collapsed housing market.
"This action is being taken to reduce the cost and increase the availability of credit for the purchase of houses, which in turn should support housing markets and foster improved financial conditions more generally," the Fed said in a statement.
Read the rest of the story: http://www.cnbc.com/id/27906891