Obama Administration Considering Plan to Encourage Mortgage Refinancing

Yesterday the New York Times reported that the Obama administration is considering a plan that would “allow millions of homeowners with government-backed mortgages to refinance them at today’s lower interest rates, about 4 percent.”  If it gets the green light, the plan could save homeowners $85 billion a year and inject some needed stimulus into a sluggish economy.  Matt Yglesias argues that the scheme makes a lot of sense.  Ezra Klein does some digging and explains why the scheme is unlikely to work.  

Steve Clowney