This is not free-market capitalism which is putting pressure on pricing, it is government policy creating this.
WShat the speculative class is more concerned about is saving they hides, not the home owners. Let the market work it self out. And as for lowering rates inflation is still a key worry and said rate cut would be counter to teh goal of controling it.
No it's not.
Investors in mortgage-backed securities are skittish because so many of the loans are going south. Despite almost record-low Fed funds rates, the credit markets won't loan the mortgage lenders the money they need to keep financing these types of loans. The money is there - nobody will take the risk.