4.5% rates?

About two weeks ago, I sent Senator Lindsey Graham a letter pleading with his office to submit legislation and efforts that would encourage loosening lending standards and lower rates at 4.5%. My letter stated that doing these two actions would spur a mini-housing boom which would lower foreclosures, take the pressure off the mortgage industry and financial market and decrease overall inventory. After a small recovery, it could make sense to ease rates back to normal standards and lending practices, having given the wounds some time to heal.

Apparantly, even more people have been writing as such. This appeared in the Wall Street Journal today:

The Treasury Department is considering a plan to revitalize the U.S. home market that would push down interest rates for loans to purchase a home, according to people familiar with the matter.

The plan, which is in the development stage, would temporarily use the clout of mortgage giants Fannie Mae and Freddie Mac to encourage banks to lend at rates as low as 4.5%, more than a full point lower than prevailing rates for standard 30-year fixed-rate mortgages.

WRITE YOUR CONGRESSMAN AND/OR SENATORS AND TELL THEM YOU SUPPORT THIS LEGISLATION AND MEASURE TO IMPROVE HOUSING. If housing grows, so will jobs!