Like SD Realtor said this will only delay the inevitable. The point people aren’t talking about but what is the key problem here is the Securitization of Mortgages. The mechanism that took us to these unaffordable levels was a massive boom in this market. This market is now dead and it isn’t coming back anytime soon. Prices will come down regardless of whether they freeze rates or foreclosures. Now that we are back to much tighter lending standards prices will come down. It is that simple. All this may do is slow down the drop. Instead of the cliff jump we would be looking at in 2008 it won’t be so vertical. If they don’t want the housing market to have a large correction they will have to resurrect this market. That won’t happen.
