According to recent media reports, leading Senate Republicans are looking to spice up the economic stimulus plan by pushing 30 year mortgage rates down into the 4% range. Details of the plan aren’t yet available, but:
Presumably, borrowers would be required to meet stringent loan requirements of the kind the lending industry reinstated in the aftermath of the meltdown from subprime mortgages, which required little documentation of income or other evidence of ability to pay.
It’ll be interesting to see how this develops. While we currently have a 15 year mortgage that we’ve been paying down ahead of schedule, it would be awfully hard to turn down a 30 year fixed rate mortgage at 4%. Talk about an inflation hedge!