Bush's 5-year subprime freeze; Dow rallies 175

CBS News

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[Music] the president's mortgage rescue plan puts a five-year freeze on some subprime adjustable rate mortgages it will apply to borrowers who are up toate on their payments but would not be able to make ends meet when their interest rate resets higher next year the Bush Administration is trying to stop the tidal wave of foreclosures which surge to an alltime high in the third quarter the White House says the plan could help more than a million struggling homeowners but as analysts are skeptical and most remain convinced the housing meltdown will still tip the economy into a recession Wall Street applauded the president's mortgage plan sending the Dow up nearly 175 points while the NASDAQ Composite rallied 42 fixed rate mortgages this week are at a 2-year low the average rate on a 30-year loan is below 6% to 5.96 while the average rate on a 15-year loan slipped to 5.65% and there is one more place to buy a Dell just in time for the holidays the PC maker will start selling its computers at Best Buy after years of selling directly to customers Del is expanding to retailers including Walmart and Staples to better compete that's your money watch log on to cbsnews.com for more business headlines in New York I'm Alexis christopherus

Bush to unveil subprime rate freeze; bankruptcies jump 28%

CBS

Transcript

[Music] the White House will offer a helping hand for struggling homeowners President Bush is expected to unveil a long awaited deal with the mortgage industry today to help stem the growing number of foreclosures the agreement will reportedly freeze interest rates on thousands of adjustable subprime mortgages for 5 years and another sign that the Fallout from the mortgage crisis may be spreading the number of households filing for Bank bankruptcy in November jumped 28% compared to the same time last year and the American bankruptcy Institute says High household debt and the Fallout from rising mortgage costs could lead to a surge of bankruptcies next year on Wall Street investors will be looking to keep the rally alive stocks soared Wednesday on renewed hopes that the Federal Reserve will cut interest rates next week the Dow gained 196 points the NASDAQ closed up 46 if you were expecting to see a sizable heritance from your affluent baby boomer parents you might want to come up with a plan B according to a new study the baby boomer millionaires out there have their own plans for the cash including lavish retirements and dream vacations having bankrolled their kids through years of education and early adulthood the Boomers just don't feel obligated to pass along their hard-earned wealth that's your money watch log on to CBS news.com for more in New York I'm Allison haralan