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| Bush details housing rescue plan |
| President George W Bush has outlined plans to freeze rates on sub-prime mortgages for five years to help people hit by the US housing market crisis.
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| UNITED STATES OF AMERICA
, 7-December-2007
1:34:1 AM |
| The move aims to shield homeowners most vulnerable to the impact of rising mortgage payments which it is feared could lead to a fresh wave of defaults.
This and other measures could help more than a million people, Mr Bush said.
He described the housing downturn as a "serious challenge" but insisted that the economy remained "resilient".
US stock markets rallied on the news of the White House plan, the benchmark Dow Jones index closing up more than 1%.
'Terrible burden'
The crisis in the sub-prime mortgage sector - where loans were offered to people on low incomes and with poor credit histories - has put the brakes on the entire housing market.
Thousands of sub-prime mortgage holders have already defaulted on their payments because of the burden of higher interest rates and have lost their homes as a result.
With an estimated 1.8 million homeowners who took out loans with discount "teaser" rates facing higher payments next year, it is feared that many others could suffer a similar fate.
Announcing a package of measures, Mr Bush said the threat of foreclosure was a "terrible burden for hard-working families and communities across the country".
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