Mortgage Rates Fall After Fannie, Freddie Bailout

Average 30-year loan rates drop nearly half a point
By Laurel Jorgensen,  Newser Staff
Posted Sep 10, 2008 2:44 AM CDT
Brokers gather around the post where their firm trades Fannie Mae at the New York Stock Exchange.   (AP Photo/Henny Ray Abrams)
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(Newser) – 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.”