Mortgage interest rates are down from a week ago after the government’s takeover of Fannie Mae and Freddie Mac. 30-year fixed mortgage rates are being reported at an average of 5.88 percent, down from 6.26 percent a week ago. While federal action was intended to help the struggling housing market by bringing stability to financial and mortgage markets, increasing the loan supply, and encouraging more mortgage lending; this move, according to some economists, could also have an inflationary impact since the government will be pumping $200 billion into the aforementioned entities.
