Treasury May Seek to Cut Mortgage Rates: Report

The Treasury Department may press for a plan to lower mortgage rates on new home loans, according to a report published Wednesday.

The Wall Street Journal, citing people with knowledge of the situation, said the plan would use mortgage buyers Fannie Mae (FNM Quote) and Freddie Mac (FRE Quote) to push 30-year rates as low as 4.5%. At this point, the plan is in the "development stages," the report said.

The report said the Treasury would purchase securities built around loans guaranteed by Fannie and Freddie, along with loans guaranteed by the Federal Housing Administration.