The Republicans is proposing for close to $900 billion for the stimulus bill that can help to bring down mortgage rates as low as 4%. This provision is seen by the Republicans as a way to revive the housing market and bring new buyers & current homeowners to refinance and lower their rates. This would mean that average person can save approximately $200 for their monthly mortgage payments, which is totaling up to $2,400 saving per annum.

These new loans provided by Fannie Mae and Freddie Mac are consist of several mortgage networks including lenders, loan officers, and brokers as the source of these loans.

This new program is capped at $300 billion and is expected to bring in more people to buy homes and save money in the same time. About half a million of home sales is estimated to occur by the National Association of Realtors.

The real estate market is also expected to get stable as more buyers are involved and help to reduce inventory. There are more foreclosures expected to happen and lower mortgage rates is seen as a good way to allow home prices to increase again.

This would benefit new home buyers as they can avoid paying excessive interest.