Could Mortgage Interest Rates Drop to 4.5% with Treasury Intervention?

Carol - I love that attitude. What could be bad about paying less for a home loan? I also agree that people should actually be able to make their payments to get a loan.

Dona - This is one of those vicious cycles. Selling more houses will get more people back to work. Getting more money into the economy will get more people back to work. We just lost some more jobs in Eugene/Springfield and it hurts every time.

Jim - Government is always re-active, never pro-active. We have an interesting time still ahead.

Jeff - Is there something about satire you don't understand? I was making a joke big guy! No matter what the rate, there will be people that want it lower before they commit. Personally, I will take every bit of help I can get in this market.

As for the H4H, who (between you and me) was right? They have already made changes and it still isn't working. But that is another blog argument, isn't it? Chill guy, chill!

Golly, Thesa, I am not after his business, just his fame. LOL. Love you too. And really love your post.

Jeff - I have to say that rates at 4.5% would be awesome. Rates at 3% would be incredible. I am just a low rate whore, what can I say?

Michelle - I do like low rates and am not afraid to say so. Give me low rates! DPAs are very useful products but should be given to people that can show they are responsible. Often times, this is best shown through credit score, not always, but often.

Heck Beth, if you had come sooner, you might have missed some of the comments. I don't know if the 4.5% rate will jumpstart the market or now, but I do know that it could generate the kind of interest I would like to see. As far as seasoned investors, I am afraid that some of them helped in the collapse as they walked away from their very little down investment properties. Investment financing has become substantially harder to do with higher down payments, more restrictive cash flow requirements and substantially higher rates. Could be interesting to see what happens in this arena. And, as for a $100k loan, even with this market, that is about half to a third of the minimum sales price.

Take a look at Michelle Chamberlain (not related) for some great comparisons to what this reduction can mean over time. I think she hit is on the head.

Doris - I can't quote an interest rate without a bunch of disclosures, but you are right. Thanks for passing this information on.

Well, you may have heard it is only for purchases, but I had 4.5% 30 year fixed interest rate available this morning for well qualified borrowers of 4.5%/4.662%APR* for either a purchase or a no cash out refinance. Not quite as good this afternoon but close. What will tomorrow bring?

Conventionals loan are $200,000 purchase or no cash out refinance (non manufactured home) with 20% down. Loan amount is $160,000. Credit score of 740 or higher.

*Rates and terms subject to change without notice. Maximum loan amounts vary by state, county, and property type . Subject to review of credit and/or collateral; not all applicants will qualify for financing. It is important to make an informed decision when selecting and using a loan product; make sure to compare loan types when making a financing decision. OR License #ML-4832

 I told you I had to do a lot of disclosure stuff to quote a rate.

Market forces are what is needed today Scott. Thanks for bringing that up.

Lisa - I don't believe that putting people into homes they can't afford is what this is all about. It is to make homes more affordable and get people that can afford a home to buy one and to help people that are having difficulty with their current payment get a lower one. That, to me, is a win-win situation.

Christianne - It is true. Been there once, may get there again.