The federal takeover of Fannie Mae and Freddie Mac sent mortgage rates plummeting today, MSNBC reports. The average 30-year fixed rate mortgage dropped nearly half a percentage point to 5.88%, dipping below 6% for the first time since January. The average rate for a 15-year loan is down to 5.49%. Lenders say rates are likely to stay lower for a time.
“I’ve seen a drop like this maybe two or three times in my 17 years in the business,” said a mortgage economist. “That’s an extraordinary drop.”