Treasury May Push Rates Down to 4.5%

US Treasury is currently considering a plan to push new home mortgage rates down to 4.5 percent. This is a full point below prevailing mortgage rates. The Treasury plan, that includes buying GSE (Fannie and Freddie) securities to manage mortgage rates, is targeted at getting new buyers to return to the housing market. The Federal Reserve announced a similar plan last week that plunged mortgage rates and surged mortgage refinance activity. A combined set of mortgage purchase and refinance government rate assistance could be the jolt borrowers need to buy and refinance housing prices into a recovery.