I happened upon an interesting article in the WSJ Market Watch. What would happen if mortgage rates hit zero? It certainly would entice all the buyers that have come to consider mortgage rates under 5% the norm into making the leap into home ownership. And, could you imagine a $550 payment on a $200,000 loan?
Taking rates to zero or at least close to zero would drum up so much demand in the economy that Title Companies, Mortgage Companies and all other industry related companies would essentially be understaffed and have to start hiring. Can you imagine?
What do you think would happen?