The Journal reports the Treasury is exploring a plan to drive mortgage rates down another 100 bp to 4.5%. Given the 10-year Treasury yields 2.75%, spreads would still be historically very wide. Typically a 30 year mortgage is priced about 1.25 or 1.50 bp over ten-year Treasuries, but these are far from typical times.
Credit worthy borrowers rejoice! Banks too! Lots of fees to be collected, lots of title insurance to be sold…Real estate brokers may even get to quite their bartending gigs…