US Housing Doesn't Need Another Government Bailout

America’s housing market doesn’t need another government bailout. But the White House is mulling plans to rescue homeowners trapped by underwater mortgages and above-market mortgage rates by allowing them to refinance into cheaper government-backed loans. Luckily, its latest musings look like a pipe dream. The Obama administration is considering two proposals, according to the Wall Street Journal, to fix a problem that has been vexing government officials for years. Many borrowers with private mortgages own homes that are worth less than the loan or whose interest payments are higher than the average 3.4 percent for a 30-year fixed-rate mortgage. Some 900,000 borrowers fall into this category, according to Barclays and JPMorgan. One proposal would allow such borrowers to refinance into a cheaper loan guaranteed by Fannie Mae or Freddie Mac. Another would lower their monthly payments ...