Treasury Secretary Henry Paulson unveiled his “blueprint” today towards the financial overhaul of the US economy and what parts the federal government would play. The financial overhaul will also include changes on the way mortgage loans are originated.

A new mortgage aid program, which the Bush administration is finalizing, would call for mortgage lenders to forgive a portion of a homeowners’ mortgage debt in exchange for the financial backing of the federal government.

This week there has been a number of huge factors contributing to the recent decline in mortgage rates. The Fed has lowered interest rates by 0.75 percent and they have also bailed out Bear Sterns from collapsing.

The U.S. economy is showing further signs of weakness as mortgage rates take a slight dip throughout the week.

Residential appraisal companies owned by mortgage companies are under scrutiny for over inflating U.S. home values during the refinance boom. A new reform, headed by Andrew Cuomo, Attorney General of New York, is aimed at easing the pressure on appraisers so they can do their job accurately.

Making the news today include Michigan’s loan modification issues, Montana’s mini refinance boom and New Yorkers getting the much need mortgage help that they need.

For the second time this month the Federal Reserve has slashed key interest rates in hopes of stimulating the U.S. economy. Although the rate cut does not tie directly into mortgage rates, mortgage rates have been on a downward spiral for the past month.

Thanks to the Federal Reserve’s emergency rate cut earlier in the week, fixed rate mortgages have declined for the fourth straight week in a row. The news has brought forth a refinance boom that could save many homeowners from their adjustable rate mortgages and possibly cut monthly mortgage expenses for those with a fixed rate mortgage above 6 percent.

The Federal Reserve surprised everyone Tuesday with an emergency intersession rate cut of .75%, the deepest cut in the Fed Funds Rate since 1984. The Fed Governors are acting in direct response to recent reports that the country is on the brink of recession, but what does this doe to your 30 years mortgage rates?

The Fed today cut the interest rates by 0.75 percent. Immediately major corporations lowered their prime rates. However, why mortgage rates aren't falling 0.750% along with the Fed interest rate cut today?

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30-Year AND 15-Year FRM At Lowest Level Since July 2005 - McLean, VA – Freddie Mac (NYSE:FRE) yesterday released the results of its Primary Mortgage Market Survey® (PMMS®) in which the 30-year fixed-rate mortgage (FRM) averaged 5.69 percent with an average 0.5 point for the week ending January 17, 2008, down from last week when it averaged 5.87 percent as well. Last year at this time, the 30-year FRM averaged 6.23 percent.