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Question: If the government would drop the inters-rate for the person who own there home.?

If some one own a home and they drop the inters-rate , low on person owning there own houses, that they would not have to foreclose them and the new house market keep at a higher rate to buy would this help the houing market.

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Answer: Interests are driven by supply and demand, not by the government. (The Fed's prime rate does not directly affect mortgage rates.) However, the budget deficit makes the government borrow more and thereby compete with homeowners for available funds. A policy of tax cuts increases the deficit and therefore increases the cost of home-ownership.

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