As it became known President George W. Bush is going to freeze mortgage interest rates to help homeowners hit by a credit crisis that has roiled financial markets, a White House official confirmed.s, saying the slump in the housing market was “source of concern” throughout the United States.

“The steps I outlined today are a sensible response to a serious challenge,” Bush said, according to The Associated Press. The plan will help struggling American homeowners avoid foreclosure, addressing a mortgage crisis that risks tipping the U.S. economy into recession and has shaken financial markets around the world.

Democratic lawmakers and presidential contenders criticized the plan for being too timid and promoted more-ambitious proposals of their own.

The agreement contains numerous limitations that would exclude many - if not most - subprime borrowers. It notably excludes those who are delinquent on their payments - about 22 percent of all subprime borrowers, according to First American Loan Performance, an industry research firm.
Bush said the plan did not represent the imposition of a government solution to the mortgage crisis.
“We should not bail out lenders, real estate speculators or those who made the reckless decision to buy a home they knew they could not afford,” he said.