Rates Fall Dramatically in Wake of GSE Bailout

"While investors are still grappling with the fallout from a Treasury-led bailout of both Freddie Mac , borrowers are clearly benefiting as mortgage rates have fallen dramatically since Sunday’s takeover of the twin mortgage giants. Freddie Mac’s weekly rate survey found that rates on a 30-year fixed-rate mortgage averaged 5.93 percent with an average 0.7 point for the week ending Sept. 11, down an astounding 42 basis points from last week and below the 6.31 average recorded last year."