The Treasury Department has a plan: Revitalize the housing market by getting banks to offer really low interest rates on mortgages by having Fannie and Freddie back them up. Per Slate:
Figures are still being worked out, but it looks like banks that want to participate in the program would have to issue 30-year fixed-rate mortgages at a 4.5 percent interest rate, which is more than a full point lower than the current market average.
These lower interest rates are only for buying a home, not refinancing.
You can read the details in today’s Washington Post, but here, obviously is the place to comment about ’em.