The word is out: Uncle Sam is refinancing mortgages, allowing underwater Fannie Mae/Freddie Mac borrowers to take advantage of ultra low rates. I interviewed one West Coast CEO who said his shop is getting phone calls from borrowers shouting "Give me one of them Obama refis." Another lender said his company is swamped with emails on the subject. But there's one slight catch to all this: mortgages rates may not be staying so low for long. At press time, the yield on the benchmark 10-year Treasury was at 2.3% and rising. Not too long ago it was under 1.9%. Of course, rates could dip again – if the Federal Reserve starts buying MBS...
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