Treasury Weighs 4.5 Percent Mortgages, But Who Will Buy?

The core problem with such a plan, according to a few secondary market experts HW spoke with, is that mortgage rates have little to do with the problems facing both borrowers in the primary markets and traders in the secondary market. “Leave it to the NAR to think that if we somehow lower mortgage rates, we’re on the road to recovery,” said one analyst, on condition of anonymity. “It’s like our government is trying a see-what-sticks philosophy to this mess.”

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“The folks in Washington apparently have little concept of the delicacy of the mechanism they are trying to ‘fix,’” said another analyst that spoke with HW on condition of anonymity.