Government-Backed 4% Fixed-Rate Mortgages?

From CNNMoney.com - "Obama pledges mortgage help":

Republicans, who opposed the president's stimulus package of over $800 billion largely because of its spending priorities, suggested mortgage help as well, proposing government-backed 4% fixed-rate mortgages for "any credit-worthy borrower," Senate Republican Leader Mitch McConnell said.

"The availability of these low-interest loans would increase demand for houses significantly and low-interest mortgages would boost household income," McConnell said in a separate radio address.

I'm not going to dissect the entire article, but I did want to bring attention to this one small excerpt (politics aside) discussing the ongoing possibility of the government clearing the way for extremely cheap government-backed mortgages. Even though this will not impact lending standards, it will continue to make owning a home cheaper without sellers actually having to reduce the price of the home (helping to shore future price erosion). If this ever gets past mere discussion and is ultimately enacted, this will also go a long ways towards motivating wannabe buyers sitting on the fence and bring urgency to buyers who are actively searching (helping to move inventory).