Despite the fact that 30 year fixed mortgage rates set a new record low this week, falling to 4.44 percent, there is still more evidence that shows the U.S. economy is once again softening with both unemployment and foreclosure rates on the rise.
The Obama administration will be providing $3 billion to unemployed homeowners facing foreclosure in some of the toughest job markets around the nation.
Yesterday the Treasury Department sent out a statement saying that it will send $2 billion to 17 states that have the highest unemployment rates compared to the national average for a year. The states receiving this money will use it for programs to aid unemployed homeowners even though some of the states already have such programs already in place.
The remaining $1 billion will go to a new program that will provide homeowners with emergency zero-interest rate loans up to $50,000 for up to two years which will be run by the Department of Housing and Urban Development.
The money for these programs will be coming from the $700 billion Wall Street bailout and at this time it is uncertain how many people will likely to be helped by this program.
Topping the list to receive part of the $2 billion dollars handed out to states will be California which will get the largest share of money, $476 million. Florida follows in second and is in line to receive nearly $240 million.
The Obama administration has rolled out numerous other attempts to deal with the foreclosure crisis and there has been very little progress thus far. Close to 40 percent, about 530,000 homeowners, will have fallen out of the administration's previous efforts to assist those facing foreclosure.
One of the previous programs called "Making Home Affordable" provided lenders with incentives to reduce mortgage payments and to date it has only provided permanent help to about 390,000 homeowners out of the 1.3 million who enrolled in this program since March 2009.