Mortgage Rates Fall Sharply After Takeovers

Mortgage rates fell sharply this week - by up to half a point - after the government took over Fannie Mae and Freddie Mac.

This was not unexpected. The mortgage giants are now able to borrow money, raise capital, and issue mortgage-backed securities at more favorable rates. The pressure has been eased on their balance sheets, and the financial community reassured.

The graph, updated weekly, offers a quick overview of recent mortgage rates trends. These are national averages, without points; local rates will differ.

For a longer view of interest rates, go to Mortgage-X Historical Rate Graph.