Fixed-rates fall after takeover

WASHINGTON (AP) -- Rates on 30-year mortgages dropped sharply this week, falling to the lowest level in five months.

The government's takeover of mortgage giants Fannie Mae and Freddie Mac appears to have helped lower rates for borrowers, as was hoped.

Freddie Mac reports that 30-year, fixed-rate mortgages dipped to 5.93 percent this week. That is down from 6.35 percent last week.

Other mortgage rates declined this week although one-year rates bucked the downward trend.

Rates on 15-year, fixed-rate mortgages, a popular choice for refinancing, fell to 5.54 percent. The average stood at 5.90 percent last week.

One-year, adjustable-rate mortgages rose to 5.21 percent, from 5.15 percent last week.

(Copyright 2008 by The Associated Press. All Rights Reserved.)

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