lower mortgage rates

[Bob]

http://money.cnn.com/2008/12/03/news/economy/treasury_mortgage_rates/?postversion=2008120407NEW 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%, 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.

 

[Bob]

lobbyists have influence?

 

[Smiling JOe]

already seeing 5% in some cases.

 

[traderx]

If my memory serves, it seems like 30 year fixed rates used to be 100 bp or so above 10 year T bonds. Today, that number would be 3.6%. I guess the premium is the result of insufficient money in mortgage banks?

 

[30ashopper]

[ame="http://www.metacafe.com/watch/579601/girl_blowing_a_bubble/"]Girl Blowing A Bubble - Video[/ame] **

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** credit goes to traderx for the demonstration video