The Real Deal Miami

Pros and cons for 4.5 percent mortgages

December 24, 2008 11:38AM

Newsweek correspondent Daniel McGinn looks at the benefits and
drawbacks of a hypothetical 4.5 percent mortgage rate. He calculates
that such a low rate would offer big benefits to consumers. But a
program of lower mortgage rates could cost the government billions of
dollars over time, and some argue that it would be better to let prices
stabilize on their own.