Wall Street Journal: US eyes plans to lift home sales

The Treasury Department is considering a plan to revitalize the U.S. home market that would push down mortgage rates for home loans, according to people familiar with the matter.
The plan would use the clout of government-backed mortgage giants Fannie Mae and Freddie Mac to encourage banks to lend at rates as low as 4.5%, a full percentage point below the current average.
Treasury views this plan as potentially halting the slide in home prices by enabling borrowers to afford bigger mortgages, thus increasing demand for homes and pushing up home values.
That, in turn, could boost the economy and improve the weak outlook for other consumer loans, such as credit cards.