I heard another tidbit that the government is getting ready to undertake another massive effort in order to push rates down again. Essentially they will perform another shopping spree of gobbling up securities much like they did earlier in the year and at the end of last year. The idea is to push rates to a lower range, (4 or 4.5%) from originators in an effort to get more buyers off the fence.
Just another rumor but it would not surprise me.
After all we can just spend our way out of this mess right?
