However, that attempt to throw a lifeline to struggling homeowners faces a stark reality; despite historically low interest rates, the very people most in need of the kind of relief that could come from refinancing their homes have found it difficult to qualify.
As the Fed undertook new measures, a study released by the central bank this week found that tight lending standards and the continuing drop in home prices prevented 2.3 million homeowners from refinancing last year.
A combination of high unemployment, stricter lending requirements enacted after the financial crisis and the sheer number of borrowers who owe more than their homes are worth continues to thwart many Americans from taking advantage of rock-bottom rates.
Analysts agree that allowing more homeowners to benefit from low rates could free up tens of billions of dollars in credit, potentially giving the economy a much-needed shot in the arm. Finding a fair and politically viable way to accomplish that goal, however, is proving difficult.
However, despite the need, many banks feel unwilling to part with their cash, particularly due to the mood in Washington. Many say that without support from congress, any action taken by the Federal Reserve may not help alleviate the problem for long.
(아주경제 앤드류 이 기자)
reporter
Park Sae-jin
swatchsjp@ajunews.com