Skip navigation
Mortgage Video Gallery
Citi and U.S. senators reached a mortgage deal, and the CNBC news team has the details.
Sen. Charles Schumer, D-N.Y., discusses the Citigroup mortgage deal with the Fast Money traders.
Fed purchases $10.2 billion in mortgage-backed securities, with CNBC's Steve Liesman.
The recent interest rate cuts from the Bank of England are starting to feed through to mortgage holders, Nick Self, CEO ...
Protecting yourself from mortgage fraud, with CNBC's Carmen Wong Ulrich.

Current DateTime: 12:05:41 09 Jan 2009
LinksList Documentid: 24355697
  • The Ten Best Jobs in America

      What makes a "good" job? Salary? Physical demands? Stress level? JobsRated.com has released a comprehensive ranking of the best and worst careers in the country.

  • 25 Years of Tech Blunders

      In the last 25 years, many technology companies have continued the tradition of ill-timed, useless and just plain bad “innovation.” In honor of the 09 CES show, we’ve compiled a list.

  • Money-Making Stars of 2008

      Every year since 1932, Quigley Publishing has surveyed theater owners and film buyers to get their take on which Hollywood names draw the most people to the theaters.

  • See Our Entire Slideshow Archive

Current DateTime: 11:27:22 09 Jan 2009
LinksList Documentid: 24890560
  • Consumer Electronics Show

      The Consumer Electronics Association's mammoth event highlighting emerging technology that will be introduced over the course of the subsequent year.

  • Taxes & Stocks

      There's money-saving, tax-planning work to be done before the New Year strikes. Our special will get you started.

  • Predictions '09

      Find out what trends, events, people and forces are likely to shape the world of business in 2009.

Treasury Considering Plan to Ease Mortgage Rates
By: CNBC.com | 03 Dec 2008 | 04:54 PM ET
Text Size



Steve Liesman
CNBC Senior Economics Reporter

The Treasury Department is considering a plan to boost the depressed housing market by easing mortgage rates on new home loans.

The plan, which is in the development stages, would bring loan rates down as low as 4.5%, a full percentage point lower than the prevailing rates for 30-year fixed mortgages.

The plan, which was first reported by the Wall Street Journal, was confirmed by CNBC.

Under the plan, the Treasury would buy securities underpinning loans guaranteed by Fannie [FNM  Loading...      ()   ] and Freddie [FRE  Loading...      ()   ], which are temporarily under the control of the government, as well as those guaranteed by the Federal Housing Administration.

Officials have said that this plan is different from the one that had previously been championed by FDIC’s chairman Sheila Bair.

Video: What the Treasury is considering.

Earlier Wednesday, bond guru Bill Gross told CNBC that the 30-year fixed-rate mortgage could fall as low as 4.5 percent as the economy stabilizes.

"The mortgage rate will come down another 50 to 100 basis points," Pimco's founder and chief investment officer said. "That's basically what the government needs. They need a 4 1/2 percent to 5 percent 30-year rate in order to support home prices and, yes, to encourage refinancing and the process of reliquification within the economy."

Yet many economists say that even with lower mortgage rates, falling home prices and mounting unemployment will keep the housing market in its deepest slump since the Great Depression.

© 2008 CNBC.com

HOME  |  NEWS  |  MARKETS  |  EARNINGS  |  INVESTING  |  VIDEO  |  CNBC TV  |  CNBC PLUS  |  CNBC MOBILE  |  CNBC HD+
About CNBC   |   Site Map   |   Privacy Policy   |   Terms of Service   |   Advertise   |   Help   |   Feedback   |   Video Reprints
  Data is a real-time snapshot   *Data is delayed at least 15 minutes
Global Business and Financial News, Stock Quotes, and Market Data and Analysis