The National Association of Realtors (NAR) and Realogy Corporation, a global provider for real estate and relocation, feel that the incentive of substantially lower mortgage rates would directly stimulate the housing market - both in sales volume and price - and thus accelerate the overall U.S. economic recovery.  They have submitted a proposal to Congress for a federal buy down of the interest rates to 4.5% fueled by their belief that there are millions of credit-worthy people ready to jump back into the housing market with just a little motivation.

They are proposing that the buy down could be funded from the $700 Billion federal plan to put liquidity back into the markets. The buy down proposed would apply to the purchase of all homes under $1 Million Dollars. NAR is also asking for a temporary $7500 tax credit for all buyers, not just those purchasing an REO. There is also a request to make the FHA limits of $729,750 permanent.

Anybody out there with an opinion on this?