Source AP ©

George Bush to improve housing market economy

U.S. President George W. Bush will try to response to the problems in the housing market.

The official, who spoke on condition of anonymity because plans are still under way, said Bush would make a statement on Thursday afternoon. The official refused to discuss what would be in the package of proposals.

However, congressional sources, who also spoke on condition of anonymity, said they expected the administration to unveil the details of an agreement made with the mortgage industry to freeze interest rates on thousands of subprime mortgages that are scheduled to reset to sharply higher rates.

The plan would be an effort to curb an explosion in defaults that is occurring as interest rates on subprime mortgages reset to levels that in many cases are boosting monthly payments by as much as 30 percent.

An estimated 2 million subprime mortgages are expected to reset over the next two years. However, the administration's plan is expected to only cover borrowers who have kept current on their monthly payments at the introductory "teaser" rates.