Treasury pushing to offer low, low mortgage rates

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.

About Andrew Kantor

Andrew is VAR's editor and information manager, and -- lessee now -- a former reporter for the Roanoke Times, former technology columnist for USA Today, and a former magazine editor for a bunch of places. He hails from New York with stops in Connecticut, New Jersey, Cincinnati, Columbus, and Roanoke.
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6 Responses to Treasury pushing to offer low, low mortgage rates

  1. dave in NYC says:

    We’ve been hearing the same thing, lower mortgage rates are coming. I can’t see this doing much good, rates are already incredibly low, although it could help keep the bottom from falling out of the market.

  2. It is not an optimistic comment but if people have no jobs they can’t afford to buy a house at 1% interest rate. I hope the new Washington DC gang can do something.

  3. Until families are able to save enough for the down payment, it’s not going to matter how low the intrest rates go.
    Save, save, save!

  4. Jill says:

    I dont think it will fix the housing crisis. But it might help in some markets. People without jobs are not going to be able to buy a house but it might nudge some people off the fence. Im a little surprised they are not allowing people to refinance. Basically it could stop foreclosures by allowing people with arms to lock in at lower rates.

  5. Just spoke to my mortgage broker about these loans:

    If you have a FICO score of 780, .25 fee,

    750-.50 fee, and on and on. So they are not as cheap as you expect.

    I have already begun to see a shift in our market.

    DB

  6. Scott says:

    this would stimulate the housing economy tremendously. Yes, a lot of people cannot afford down payments such as 20% but there are also a lot that can and will take advantage of securing their financial future with this type of loan.

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