Mortgage Rates Could Drop To 4.5% If Paulson Scheme Works

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)

Comments

  1. do you think the proposed 4.5% would apply to investment properties?

    ReplyDelete
  2. I think the idea is to drive all mortgage rates to that level, so yes, I believe so.

    ReplyDelete
  3. Thanks for this news.

    ReplyDelete

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