Cape Coral Florida's Real Estate Guide

The U.S. Treasury is constructing a plan to stimulate new and existing home sales by reducing the interest rate on home loans. The current rate will be reduced from the current 5.5% to 4.5% and this reduction would apply to new mortgages on new and existing homes. While a step in the right direction, there are many who are critical of the treasury's proposal.

Industry insiders say that the treasury's plan may hurt current mortgage investors. Others criticize the plan because the rate reduction would only apply to new mortgages and not to refinancing. Those critics say that there will be nothing to stop neighbor's from "trading homes" to get the 4.5% interest rate. Many realtors back this plan because it would mean a jump start for home sales and anything that can get homes sold will help in the current market conditions.

Although there is no date set for a decision on this plan, we can expect to hear more about this in the coming days and weeks. Check back often for more updates.