Florida Mortgage Rates have reached the lowest they have ever been on a 30-year fixed rate mortgage, as mortgage rates have dipped to just 4.5%, falling below even the lowest rates seen in 2003. Now, more than ever, homeowners should be rushing to refinance or purchase homes as these rates may never be seen again.

OK, hopefully you have already realized that the above paragraph isn’t true, at least not yet. However, the lunacy of our Treasury Secretary (Henry Paulson) and Federal Reserve chief (Ben Bernanke) may yet make that paragraph a reality. Treasury Secretary Paulson openly admitted he wants mortgage rates to be as low as 4.5% in an effort to boost the real estate and mortgage industries, not to mention getting homeowners to start using their homes like ATM machines again since that is what was propping our economy up before.

Since mortgage rates are derived from mortgage backed securities (aka mortgage bonds or MBS), Paulson and Bernanke are willing to be the buyer of mortgage bonds in order to drive those prices up, which then drives mortgage rates lower. They publicly announced their intent last week, Tuesday to be exact, which is why mortgage rates are down to about 5.5% right now. Paulson then said yesterday that his goal was 4.5%. Make no mistake, they want to save the world no matter the cost.

Where does the money to buy mortgage backed securities come from?

You guessed it. Taxpayers like you and I. With the latest bailout bill successfully passed under the disguise of the “TARP” (Troubled Asset Relief Program), Bernanke and Paulson were given blank checks that could amount to $700 billion. Of course, Paulson came out and said he had no intent to use all of the money, like we were supposed to believe that. Paulson announced his intent to ask for the remainder of that $700 billion this week, and likely he will ask for more.

In the meantime, Bernanke and gang are playing their part by extending the term facilities. You know, all those acronyms that have amounts that keep growing almost daily, like the TAF, TSLF, etc. The combination just keeps flooding the economy with “new money”, begging the question as to where it comes from.

Have no fear, since the Treasury is in charge of our money supply, they can just print more. I know there are limits, but let’s get realistic. With the current state of the economy and the determination of Paulson and Bernanke, along with our current (and future) political spectrum, you can count on money being printed in their efforts to save America from economic ruin.

Now, let’s look at the history of government interventions. rather than go into great detail again about how they merely prolong the problems, if not exaggerate them, please go back and read this post…Should the Government Clean Up the Mortgage Mess?

Taking a look at the costs involved, one can only realize that it will be the taxpayers whom ultimately pay the price. Sure, the government has made those promises that they will make every effort to protect the taxpayer and make sure they get their money back, even saying the government is “investing” in companies that they are bailing out. One only needs to look at what Paulson is doing with the $700 billion TARP to realize that is a load of crap.

The good news is that mortgage rates may indeed go down to 4.5%. That is certainly good news because you will need to get all of the cash you can out of your home so you can pay the taxes required to fix the government’s “solutions.”