Insider Q&A hears Fed likely can’t help housing

“I think what the Fed does with interest rates isn’t significant at this point. The generous loan programs of the past are gone. This means someone actually has to have cash and a job to obtain a loan. Sure, the lowering of rates is better than raising them, but its impact on the positive side will be negligible. In addition, prices have declined. It’s entirely possible to have all the qualifications personally to refinace out of a bad loan, but if you are in a negative equity position, that’s going to present a real challenge. I think the lender would require an equity cushion at this stage of the game and It’s doubtful many owners will send in a chack to make up the difference.\” – Bruce Norris