According to William Gross they probablyare. I just finished reading an article on line on CNBC's Website. Mr. Gross is chief investment officer and founder of the investment management firm PIMCO. PIMCO runs one of the largest (if not the largest) bond funds in the World. In the article Mr. Gross said; "I think at some point we're going to see a 4.5 percent mortgage rate and the 10-year Treasury rate capped at some level," he said. "When the Fed comes in to buy Treasury's that will be a big day. If you would like to read the article just click here.
If Mr. Gross is correct, will that be enough to help the Housing problem we are experiencing in Kenosha County? All over Kenosha county from Kenosha to Salem and from Pleasant Prairie to Somers the housing market is limping along at a miserable pace. All of the counties in Southeast Wisconsin, Milwaukee, Racine, Walworth and Waukesha are all in the same boat. If the Federal Government can push rates down to 4.5% and Congress passes a stimulus package that includes a $15,000.00 tax credit I believe the housing crisis may be closer to the end than the beginning. If nothing else, it should help thousands of homeowners in southeast Wisconsin refinance their current mortgages. Let's hope Mr Gross is right.