Treasury mulls plan to lower mortgage rate
Posted: Thu Feb 09, 2012 9:12 amTreasury mulls plan to lower mortgage rate
« Thread Started on Dec 4, 2008, 7:34am »
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Treasury mulls plan to lower mortgage rate
Posted: 08:03 PM ET
By Tami Luhby
CNNMoney.com senior writer
NEW YORK (CNNMoney.com) — Lobbyists are pushing the Treasury Department to consider a plan to purchase mortgage-backed securities in the hopes of driving mortgage rates to as low as 4.5 percent, an industry source said.
Similar to an effort unveiled last week by the Federal Reserve, the proposal calls for Treasury to buy securities backed by 30-year fixed-rate mortgages from Fannie Mae and Freddie Mac. Details on the plan remain sketchy, but an announcement could come as early as next week, the source said.
The increased demand for mortgage-backed securities would prompt mortgage rates to drop. That, in turn, would enable homeowners to refinance into lower-cost loans and make it cheaper for potential homebuyers to get into the market.
Spokeswomen from Treasury and the Federal Housing Finance Agency declined to comment.
« Thread Started on Dec 4, 2008, 7:34am »
--------------------------------------------------------------------------------
Treasury mulls plan to lower mortgage rate
Posted: 08:03 PM ET
By Tami Luhby
CNNMoney.com senior writer
NEW YORK (CNNMoney.com) — Lobbyists are pushing the Treasury Department to consider a plan to purchase mortgage-backed securities in the hopes of driving mortgage rates to as low as 4.5 percent, an industry source said.
Similar to an effort unveiled last week by the Federal Reserve, the proposal calls for Treasury to buy securities backed by 30-year fixed-rate mortgages from Fannie Mae and Freddie Mac. Details on the plan remain sketchy, but an announcement could come as early as next week, the source said.
The increased demand for mortgage-backed securities would prompt mortgage rates to drop. That, in turn, would enable homeowners to refinance into lower-cost loans and make it cheaper for potential homebuyers to get into the market.
Spokeswomen from Treasury and the Federal Housing Finance Agency declined to comment.