Fannie, Freddie Report Progress in Cutting Some Mortgage Rates

Submitted by Ronald Tennant with Metrocities Mortgage:

Wall Street Journal (05/23/08) P. A5; Hagerty, James R.
In testimony before the House Financial Services Committee on May 22, Fannie Mae and Freddie Mac executives said "more aggressive" jumbo loan purchases have helped to reduce interest rates on these loans. Congress boosted the conforming loan limit to $729,750 until the end of the year to help bolster the housing market, but rates on big mortgages remained high because investors worried about the likelihood of such loans being refinanced once interest rates decline. HSH Associates reports an average jumbo loan rate of 6.61 percent last week, versus an average of 6.17 percent on 30-year fixed mortgages for $417,000 or less.