4.5% Rates From The Feds?? I'll Believe It When I See It!

This morning we have seen a lot of news regarding a push by lobbyists to get the Feds to buy enough mortgage backed securities in the open market to drive rates down to 4.5%.

I say BULL!! I'll believe it when I see it. If their idea of helping the real estate industry is anything like the FHA Secure Programs or the Fannie Mae Hope Loans - its great for political rhetoric, but NO ONE CAN USE THEM!! Out of my 1200 clients - NOT ONE PERSON could use those "historically helpful programs" - so I say BULL!!

I do hope that rates fall to 4.5%, but if they do it should be under normal free market economic conditions, where demand matches supply, where real rates of returns for investors are not clouded with inflationary uncertainty and there are no short term fixes from the government that look great on paper but provide no value to the end user - US - THE TAXPAYERS!!

Here is the BOTTOM LINE: If rates go to 4.5%, without additonal Points, you will be the first to know via my Mortgage Hot Line and Rate Watch Monitor.

More to come...... Jon