March 5th, 2009 1:37 PM by
Congress has struck a deal on the largest economic stimulus bill since the New Deal in the 1930’s. The questions about the potential effectiveness of the bill have already begun. The primary goal of the government's spending package is to stimulate the economy and create new jobs.
Eventually, if the economic condition in the United States deteriorates further, these buyers of US debt may require higher interest rates to compensate for the poor economic condition of the issuer. Mortgage rates, in particular, could be affected if Treasury yields are pushed higher.
The good news for homebuyers/homeowners in the Tennessee area is that the final version of the stimulus bill is expected to contain some relief for the housing market. Democrats have pushed for a significant tax credit for homebuyers, while Republicans have advocated government intervention allowing homeowners to refinance their mortgages at a lower fixed rate. Either measure would help take some of the sting out of higher mortgage rates for homeowners and homebuyers. Contact Reliant Mortgage for all your Tennessee Refinancing needs.
Clark Schultz, www.money-rates.com
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