Let no one accuse quiet Ben Bernanke of not having balls.
Bloomberg: U.S. mortgage rates may fall to the lowest since World War II after the Federal Reserve announced plans to buy up to $300 billion of Treasuries and increase purchases of mortgage-backed bonds.
The rate on a 30-year fixed mortgage may fall to 4.5 per cent, the lowest since the 1940s, said Mike Larson, real estate analyst at Weiss Research in Jupiter, Florida. In 1945, the average annual rate for a mortgage was 4.7 per cent, Larson said, citing data in the book, “A History of Interest Rates,” published by Rutgers University Press…
(Wait–Wasn’t the problem that money was so cheap that everyone took on too much debt? Never mind…)