How will the proposed 4.5% interest rate loans affect our housing market? In my opinion, it will lessen some of the housing inventory, but it will not be the answer to the housing crisis. For one, the proposal is for people with credit scores of 720 or better, must have 20% down, and it is not available for refinancing. I believe with the other programs in place helping homeowners to keep their homes (if the banks actually use the funds for that purpose), the lower rates, and much much lower home prices, we will eventually see the market back to normal. Only time will heal this wound...a lot of time.