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In the event you hear some rumbling about mortgage rates going down to 4.5 please see below for clarification.  I have had some inquires regarding this so I thought I would share.   
 
Under the Treasury Department proposal, the low rate would only be available to those purchasing a home, not for refinancing.  Borrowers would have to qualify for a conforming mortgage that could be guaranteed by one of the government sponsored enterprises or the Federal Housing Administration.   To qualify for those types of loans borrowers must be able to document their income and have sufficient income to make monthly payments.

The government hopes that this plan will increase the demand for homes and stabilize housing prices.  Both of these factors are considered by many economists to be key to improving the current economic situation.  It may also help a bit with the other primary housing concern - preventing foreclosures - as it may make it easier for homeowners in trouble to sell their homes and get out from under delinquent mortgages.  In many cases, however, such an avenue will not be available to homeowners because so many lack any equity.

The Treasury Department plan is only in the talking stage and may not be ready until after President Bush leaves office on January 20 at which point it would be necessary for President-elect Obama to sign off on it.