Housing Crisis Solution - Anyone on here this could help?

[Snave]

Lower mortgage rates no silver bullet - Dec. 4, 2008

When I read this article, I just didn't understand who this could possibly help. The jist of it is to potentially push rates to 4.5% to lure out buyers. I was wondering how many people even fall into this category? I personally don't know anyone that is sitting on the sidelines with the cash to buy that wouldn't need to unload a home themselves. Clearly with newer guidelines, they would only be able to get people with good credit and adequate downpayment. Again, how many people are like this on the sidelines? The article states this would NOT be for refinances. OK, I guess I don't get it. Aren't there more people potentially hanging on by a thread and trying to make their payments that could then refinance and save their homes? A lower rate for refinances seems smarter to me to keep people from foreclosing in the future (I do realize some probably couldn't b/c they would have no equity in their home). Any thoughts?

[maat55]

I personally would be appauled at the idea that the government would step in and give 4.5% loans to new buyers excluding refinancing. IMO, the gov. needs to step aside and let the economy fix itself.

Also IMO, the gov should stop handing out candy and if the gov is going to give candy, it should let everyone put there hand into the basket.

[gamecock43]

I'm buying! Having trouble convincing the lender to loan us the amount we need...this 4.5% rate would drop our mortgage payment nearly $100 a month and into the price bracket the lenders think we can afford!

[ScrimpAndSave]

I'm dying to know when this is going to happen and how long it is going to last. I have enough cash for a starter home...but not enough cash for my forever home...

[MonkeyMama]

I know quite a few people who would buy at that interest rate.

Not saying I like the idea, but there are people, and could be helpful in an area where I live with very high number of foreclosures.