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Such moves could have the effect of lowering mortgage rates.
Cutting borrowing costs could shore up activity in a jittery housing market by lowering mortgage costs.
Like its larger corporate cousin, Fannie Mae, Freddie Mac is a government-sponsored finance company created to encourage home ownership by lowering mortgage rates.
This week, the Fed said it would buy some $750 billion in mortgage-backed securities and $300 billion in longer-term Treasury debt, a move aimed at lowering mortgage rates and easing the constricted credit markets.
Some are looking to efforts by the Treasury and Fed to jump-start lending by lowering mortgage rates and improving the market for bonds backed by small-business, auto and credit card loans.
Few people have taken part in the program so far, and Mr. Bernanke said it could get a kick-start by lowering mortgage rates from their current 8percentt, or reducing a 3percentt insurance premium lenders must pay.
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Paying off the debt will give many Americans an effective tax cut by lowering mortgage-financing costs.
Before that, according to various market reports, there had been a brief, sharp uptick around the region, ascribed to lower mortgage rates and asking prices.
Still, the decision to place the two companies into conservatorship immediately lowered mortgage rates Monday by helping to drive up the price of bonds they issue.
The stockmarket slide has dented consumer confidence, but investors' flight from risk has pushed down yields on Treasury bonds, which in turn should lower mortgage rates.
The Fed hopes that these purchases will lower mortgage rates, boost new construction, prop up home values, lift stock prices and otherwise energize the moribund job market.
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