Historically Low Rates

Mortgages in Greenville, NC - Last week the US Treasury discussed purchasing mortgage loans from Fannie Mae, Freddie Mac and the Federal Housing Administration in an effort to push mortgage rates to 4.5%. At first, I thought it was just a rumor, but after further investigation, it looks like this is real possiblity.

As a reaction to the hype and open media discussion on the rates hitting 4.5%, rates actually dropped below 5% in the ladder part of last week, almost reaching 4.5%.

I'm not a economist by any stretch of the imagination, but I really believe that we'll see rates hit 4.5% on 30 year fixed and possibly lower. Low mortgage rates won't fix the US economy, but it's a much more tangible benefit to the average US family than a drop in the Fed Funds Rate. For this reason, I believe that the US treasury will follow through with the plans to purchase mortgage debt and effective drive interest rates to their lowest rates is US History!