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More stimulus moves from China with the easing of mortgage rules seem to have disappointed, giving little support to the commodity sector.
Tony Cross, market analyst at Trustnet Direct, said: Burberry, BAT and Imperial Tobacco are all struggling and given news of the Chinese stimulus measures released overnight with the easing of mortgage rules, there could well be some read across here.
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Another Karatz contention: The ease of mortgage financing has made buyers less sensitive to rate hikes.
Among those were the easing of restrictions on the rates banks could pay on deposits and the introduction of flexible mortgage rates to fit consumers' needs.
And government action may help to ease the drought of mortgage finance stemming from the collapse of the subprime market and the contraction of the market for large ("jumbo") mortgages, and to limit foreclosures.At the height of the housing boom in 2006, non-traditional loans, such as subprime and jumbo mortgages, backed nearly 40% of home sales.
As millions of Americans struggle in foreclosure with little hope of relief, big banks are going to borrowers who are not even in default and cutting their debt or easing the mortgage terms, sometimes with no questions asked.
Take away ease of access.
Congress and the Bush administration should move quickly — as they proved they could with the rapid passage of the stimulus package — to enact laws to ease the renegotiation of mortgages and keep homeowners who are able to pay the new charges in their homes.
The period included passage of legislation to let the government bail out two of the companies — Fannie Mae and Freddie Mac — and take other steps to ease the mortgage crisis.
On top of these efforts would be added the quantitative easing purchases of Treasury bonds and mortgage-backed securities first announced by the Fed in late November 2008 and now in a third round.
The Your Money column on Saturday, about an easing of terms for home mortgages at some regional lenders, misstated in some copies, the surname of a homebuyer in Seattle at several points and misspelled his given name in a picture caption in some copies.
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