Mortgage Rates Are Plunging--For Those Who Qualify

Los Angeles Times (09/11/08); Reckard, E. Scott
In the days since the government assumed control of Fannie Mae and Freddie Mac, HSH Associates says the 30-year fixed mortgage rate has dropped to about 6 percent. While many borrowers are rushing to lock in the new rates, experts point out that only those borrowing less than $729,750--the new conforming loan limit--will qualify for the lower rates. Moreover, with lenders implementing rules slated to take effect at Fannie Mae in 2009 that mandate 15 percent down payments, more borrowers will find it difficult to secure financing.