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Mortgage Rate Plunge Will Be Huge for Banks

By Jim Cramer

 About this article:
 If you ask any homebuilder, say a Bob Toll of Toll Brothers , or if you would ask any banker, like Ron Hermance at Hudson City or Vikram Pandit at Citigroup , they would tell you the same thing: If you get mortgage rates under 5%, you get a huge surge in homebuying. Colossal. Gigantic. People look to buy homes simply because they are too cheap not to because of the rates. I am looking at this 30-year Treasury rally off the amazingly positive sale of new 30-year Treasuries, and I am salivating because I think banks can go under 5% for mortgages, where you will get an explosion in buying. This rally is gigantic, taking the 30-year down to 4.2%. What a win! I don't know a soul who predicted this. I think the decline in mortgages that stems from it will be so powerful...

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