During his State of the Union speech, President Obama introduced a new plan to save responsible homeowner $3,000 a year on their mortgages by refinancing at historically low interest rates. Americans would be wise to be cautious, however, about the new efforts by the federal government. The federal government’s previous intervention in the market has distorted the housing market’s natural forces and postponed the economic recovery. So far, government interventions and the bailout of Fannie Mae and Freddie Mac have cost taxpayers $300 billion. The new plan may cost taxpayers …
