Treasury Secretary Henry Paulson today called for a set of measures, such as renegotiating mortgage rates, to prevent further deterioration in the U.S. housing market. Mr. Paulson told the Office of Thrift Supervision National Housing Forum in Washington that “the housing market downturn is the biggest challenge to our economy.”
According to industry estimates, about 2.4 million mortgage loans with low introductory rates will be reset higher over the next two years, which could further increase the rate of foreclosure linked to adjustable-rate mortgages.
