There are indications that Treasury Dept is considering a plan that, if true, would use Freddie Mac and Fannie Mae to "force banks" to make mortgages available at 4.5% for home buyers. The low interest rate would be available only to those who are purchasing a home, and not for refinancing.

To encourage banks to issue new mortgage loans at lower rates, the Feds are offering to Mortgage Backed Securities (MBSs) at a price equivalent to the 4.5% rate. The details of the Fed's MBS purchase plan are not known at this time. However, one possibility is for the Treasury to raise money by issuing bonds at 3% interest. This would allow the government to turn a profit because it would be buying MBSs that pay 4.5%.

Senior Treasury officials said they were optimistic that subsidizing lower mortgage rates with taxpayer dollars would help revive the housing market. In a meeting with the National Association of Realtors last month, Treasury officials said that the plan will be a more effective way to help homeowners than focusing efforts solely on borrowers who are struggling to meet their monthly payments.

 
This post has been included in Massachusetts Information
Post is included in group: Mortgages
Post is included in group: Interest Rates
Post is included in group: Consumer Mortgage Tips

1 Comments on 4.5% Mortgage Rates Coming Soon?

DEC
04
1 Featured Post

Historically, interesting things happen when the gov tries to create artifical floors and ceilings (ceilings in the case)...we'll see how it works out, but I'm telling my clients that 5.25 is a great historical rate...if you get greedy and look for 4.75%, you are passing up a sure deal at 5.25.

10:02am • #1

This blog does not allow anonymous comments

 

Click Call Connect - Ccube gets YOU connected with Instant Calling



rets



Click here to fill out a Wish List
of what you want in your next home!






Mortgage Rates


Historical Mortgage Rates



Legal Requirements
and Disclosures

Licensed by the Massachusetts Division of Banks Mortgage Broker # MB0782. WE ARRANGE BUT DO NOT MAKE LOANS. Lew Corcoran is a Licensed Professional, Massachusetts License MLO69200. Florida Mortgage Brokerage Business MBB 0501382. The content and information or data on this website is subject to change without notice. All loan programs are subject to credit approval. Not all loans or products are available in the states we are licensed in. Information on the website shall not be considered a commitment lend. Restrictions may apply. All loans are subject to credit qualifications and Lender approval.

As always, your referrals are greatly appreciated. When you recommend someone you know to me for advice, you can be assured that they will receive Honest, Courteous and Professional service which is what you would expect from me. Lew Corcoran

Star Mortgage® is our trademark. Registered with the United States Patent and Trademark Office - All Rights Reserved.


Repair your credit today with Lexington Law




Links

Archives

RSS 2.0 Feed for this blog

Find MA real estate agents and Brewster real estate on ActiveRain.