Mortgage Rates Decline Below 4.8% with the Help of the Obama Mortgage Plan
When President Obama released his mortgage plan in March, one of the intentions was to lower mortgage rates to assist those who wanted to save money by refinance. Little did President Obama know that Ben Bernanke would sink over $1 trillion into mortgage backed securities. Oh wait… Now that the Federal Reserve has printed as much money as the press will allow, mortgage rates have fallen well below 5%. With rates at historic lows, one must admit that the Obama Mortgage Plan has been somewhat of a success.
We still do not know how many refinances are actually being completed, but we know the amount of applications continues to rise. In the next few months we will find out if these applications are actually completing the process or are they getting held up due to the decline in home prices. Ultimately, the goal of hte Obama Mortgage Plan is to find a floor in home prices and that has yet to happen. By pushing mortgage rates well under 5% there is a very good chance that many first time home buyers will make the leap.
President Obama can only hope that this will be the case as unemployment continues to take its toll on the overall economy. Many financial pundits predict that the housing market and increasing home prices will lead us out of this recession. If that is the case, now might be one of the best times in history to refinance your current mortgage or take the leap and buy your first home.