The article written by Luke Mullins, US News explains more about Fed’s action on Wednesday, April 18:
And you thought 5 percent was a good rate? After already bringing mortgage rates down near 50-year lows, Fed Chief Ben Bernanke unleashed a surprise attack on the housing slump Wednesday by announcing aggressive steps that should make home loans even more attractive. Lower rates, of course, can help push timid buyers off the sidelines so they can mop up the excess inventory that’s been driving down home prices. “This is a huge step forward,” Ian Shepherdson of High Frequency Economics, wrote in a report shortly after the announcement.
Read more here.