No.. not off a building or a bridge! 4.5% interest rates may be around the corner. What does this mean to you? If you’re planning to buy a home; start looking! Planning to sell a home; get ready to list it! If you have a mortgage rate of 5.5% or more and you plan to stay in your home for several more years you need to be ready to re-finance. 

CNN is reporting that Lobbyists are pushing the Treasury Department to buy down interest rates.  Cnn’s says “Similar to an effort unveiled last week by the Federal Reserve, the proposal calls for Treasury to buy securities backed by 30-year fixed-rate mortgages from Fannie Mae and Freddie Mac.” That proposal caused an immediate drop in rates of at least ½ point.

We’re already getting calls from perspective home buyers with questions, so here are some answers and food for thought.

Here are some quick numbers; a $200,000 mortgage at 6.5% makes your monthly mortgage (minus homeowners insurance) approximately $1,514.14 a month. If your mortgage was at the current rate of 5.75% your payment would be approximately $1,417.15 monthly. But a $200,000 mortgage at 4.5% drops your payment to $1,263.37 a month. That’s a $250 a month savings!

As of right now CNN says “Spokeswomen from Treasury and the Federal Housing Finance Agency, which oversees Fannie Mae (FNM, Fortune 500) and Freddie Mac (FRE, Fortune 500), declined to comment.”

But this may be more than just running an idea up a flag pole and looking to see home many people salute. It’s a great idea and if current homeowners can save money on mortgages it could help pump money back into the economy. For anyone trying to sell property it’s a breath of fresh air.

Call your mortgage company and let them know you want to be notified if/when the drop occurs so you can lock in. Call us if you want to see any home in the Louisville / Southern Indiana area. (502) 376-5483 or go to