Government guarantees Fannie, Freddie’s debt

October 21, 2008 11:43AM

The government has guaranteed Fannie Mae and Freddie Mac’s debt, and now
regulators are trying to help the companies sell debt on better terms. Despite
huge efforts by the Department of the Treasury and Federal Reserve to encourage lending, home mortgage
rates have increased in recent weeks after briefly slipping below 6 percent
last month. The average rate on 30-year fixed-rate home loans that conform with
the standards of government-backed investors Fannie and Freddie was 6.61
percent last week, up from 6.14 percent the week before, according to HSH

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