U.S. Eyes Plan to Lift Home Sales

WSJ:

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.

I’m not sure whether to take this as “see, we’re doing something for the average American” spin, or a last-ditch effort by insane people to crutch up the housing bubble for another 90 days.

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