The Obama administration announced on Friday a plan to reduce the amount of troubled homeowners’ debt on their home loans.  This plan will allow people to get new loans backed by the Federal Housing Administration, a government agency that insures home loans against default.  This will be funded by $14 billion from the administrations $75 billion foreclosure-prevention program.

The plan would also help existing mortgage companies to receive incentives to lower their principal balances.  The program would also reduce monthly payments for unemployed homeowners for up to six months.

But the administration warned that the plan is not intended to stop all…

The New Home Sales fell 2.2% to a record low 308,000 annual rate this February.  This record was much worse than the consensus estimates which called for an annual pace of 320,000 units.  The Northeast area saw the biggest decline in sales as it dipped 20.0% over the course of February while the Mid-western area was second with 18%.  These areas were hit the hardest with snow storms.

The reaction rates in markets are:

* 3.625% coupon bearing 10 year TSY note didn’t react but the 10s were already off their high yields
* FN 4.5 followed its benchmark guidance giver’s direction and…

You need to deal with a lot of things like paying the mortgage and caring for or maintaining a home when you purchase a house.  But homeownership can bring a lot of benefits and here are the reasons why you should buy and own a house.

You can increase your household wealth when you own a home because of home equity.  The home equity is the difference between the home’s fair market value and the outstanding balance of all liens on the property.  Aside from that, you can also expect around a 6.5% average value increases in your home each year…