Homeowners today are extremely frustrated as mortgage refinance seems impossible even though historically the interest rates are at its lowest.

Even Wall Street seems to agree with the need for people getting refinance. They see it as a way to increase the spending of money. The analysts and economists are expressing the need for a mortgage reset and says it can be done by the government who is in control of Freddie Mac and Fannie Mae, huge mortgage lenders. They can have them lower standards so that fees may be less and more people would then qualify for refinance.

According to the Obama administration this idea will only have a short term effect while the economy will have long term consequences. Having this refinance boost would only lower the standards of loans which is one aspect which got the country in the current situation that it is in.

It would also introduce higher rates for new borrowers and push U.S taxpayers to endure more risks as their money is what technically runs Fannie and Freddie. Left leaning Center for Economic and Policy Research co-director Dean Bakers stated that soon will would have to think of how much more can taxpayers be asked to help support people in having housing. RAtes for home loans are at its lowers at 4.49% which hasn’t been seen since 1971 yet millions of people are still not able to benefit from it.