Word from Bloomberg news today is that the Treasury is cooking up a new plan to drive mortgage rates lower, as low as 4.5%. The plan would involve the Treasury, already authorized, being more aggressive in buying Fannie and Freddie mortgage backed securities.
It is still perplexing that after $7 Trillion, the Treasury is just now starting to address the core issue in the housing market. Seems that they are slowly getting close to The 4% Solution.
In other related news, the dip in rates has created a spike in refinancing.
A Rush Into Refinancing As Mortgage Rates Fall (NY Times)