Treasury eyeing 4.5% mortgages?

Economists question propping up home prices

News that the Treasury Department may use Fannie Mae and Freddie Mac’s influence on mortgage markets to push interest rates on home loans down to 4.5 percent has raised hopes for a boost in home sales but sparked debate on whether it’s wise to prop up housing prices.

The Wall Street Journal reports that the Treasury is considering using Fannie, Freddie and other government sponsored entities to purchase securities backed by mortgages at a price equivalent to a rate of 4.5 percent.