4.5% Mortgage Rates?

Yes you did read the headline correctly. Don't get too excited, because rates are not there yet. However, there is hope. First rates already dropped significantly on the news of the governments cash injection into the MBS market. This money has not even hit the market yet and they are already discussing injecting more money. There is also a group of lobbyists pushing the Treasury with a proposal on how to bring rates down to 4.5%. All the details of this are sketchy and I have read different news articles that each put a slightly different spin on the details. I read one article that said the proposal was for purchases only and not refinances. That would be a bummer and I can't see how that would work. Not only is it not Fair, with this scenario I could see many people trying to sell their homes just to upgrade and get the lower rate. More bang for he buck. I don't think this would be what we want. I even read about a "Fix Housing First" plan by a group that is pushing for 2.99% Mortgage Rates! Now that would be something! I question this idea, but it shows people are really trying to get this industry healthy again. It will be interesting to see. One nice thing is that just like the drop we saw last week, we don't need a special program or proposal to get rates low. Once all this money hits the MBS market we could see rates at 4.5% anyway. Is this a certainty...NO, but it is very possible.
All good news at a time when our industry lacks it! Please check back. I am sure more details will continue to be announced.

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Professional Mortgage Group, Inc.