President Barack Obama promised Saturday to reduce mortgage costs as a key part of his plan to improve the economy.

Analysts applauded the move, saying that making low-cost mortgages widely available could stabilize housing markets and jumpstart new home construction.

Beyond that, observers say aid for the troubled housing market will help blunt the anger many Americans feel over the financial bailout as the executives of firms that received billons take bonuses while average people lose their homes.

Source: Reuters News, Mark Felsenthal (01/31/2009)