U.S. approval of 300 billion U.S. dollars to save the market

The U.S. Senate on the 26th made an exception and weekend meetings, vote on approval of a total 300 billion U.S. dollars in housing assistance to the motion, about 400,000 home buyers unable to loan the government is expected to be secured.

This motion on the 23rd of this month in the House of Representatives has already passed, will be President George W Bush signed after the entry into force. United States Government believes that the motion will help to boost housing and confidence in financial markets.

Government to provide guarantees

This motion on the 26th of 72 votes in favour and 13 votes against the results of the vote in the Senate, was adopted. Senate rare weekend meeting, the vote is an exception.

The motion by 694, authorized the U.S. Treasury Department indefinitely increase the two mortgage lending institutions, "Fannie Mae" and "premises of the United States and" credit loans, if necessary, from time to quantitative stock acquisition of the two institutions.

The motion approved by the Federal Housing Authority to a secondary mortgage crisis landlord to provide the total 300 billion U.S. dollars to the mortgage loan guarantees. About 400,000 homeowners will have the opportunity to get a lower interest rate mortgage loans, thereby avoiding the loss of housing mortgage redemption.

Motion, some communities will provide 3.9 billion U.S. dollars loan to help "the slaves" re-mix of debt to a fixed rate of interest, the payment of the remaining Fangkuan the form of loans.

The motion as "Fannie Mae" and "premises of the United States and" the purchase of mortgage loans, and the Federal Housing Authority can guarantee the mortgage loan limit. Motion proposed the establishment of a regulatory body, "Fannie Mae" and "premises of the United States and" the investment behavior, the authority of this body rejected the two major financial institutions, the remuneration arrangements for executives.

U.S. Pacific Investment Management investment manager比尔格罗斯that increase the mobility of lower mortgage costs, the market back on track is the best way.

Boost market confidence

Members of Parliament and the Government welcomes the motion passed, saying it would help boost market confidence.

Before the vote, more than senators praised the motion is "very little cooperation between the two parties" product. They said that the motion was adopted to contain the area of housing on the negative impact of the crisis is essential.

Senate Banking, Housing and Urban Affairs Committee Chairman Christopher Dodd said: "The United States, loan-to-the extent of the crisis may be in the world. Wealth is shrinking, creating wealth at the same time the costs and expenses rose."

The loss of housing mortgages to the owner the right to redeem the number as an example, Dodd said: "I am behind the figures cited in each, have a family, a mother, a father and child facing unemployment, loss of housing and uncertainty The future. "

White House spokesman Tony Fratto said in a statement: "We appeal to as' Fannie Mae 'and' premises of the United States' establishment of a strong and independent regulatory body for almost six years, the president called on Congress to make legislation as soon as possible Federal Housing Authority adapt to the needs of the times, so that Americans, especially low-income homes, almost one year. Therefore, the Democratic Party-controlled Congress final action is a good thing. "

Statement said that, "Fannie Mae" and "premises of the United States" to provide financial support and increase the intensity of supervision, will help boost the housing and financial market confidence and promote market stability.

Rates have not yet bottomed out

The aid package the United States plans to save the real estate market can play much role to be the test of time. However, analysts point of view and survey data show that U.S. housing prices will drop further, potential buyers will continue to wait and see.

Canadian bank economist Richard Kelly said: "With a lot more housing on the market, prices will drop further to facilitate the grantor further in trouble and lead to more loss of housing mortgage foreclosure case there."

According to the U.S. National Association of Realtors statistics, if the existing sales, the United States by the end of June this year, the number of vacant housing to meet the 11.1 months of market demand, home sales price fell 6.1 percent.

Association President Richard Gaylord said that the survey data show that "in the face of housing prices decline, nearly a quarter of potential buyers is wait and see."

According to U.S. government statistics, in June this year, the U.S. new home sales dropped 0.6 percent. Since June 2007, new home sales decline 33.2 percent. In June this year, existing home sales declined by 2.6 percent, the lowest in the past 10 years. Since June 2007, existing home sales decreased 15.5 percent. (First-History)