Mortgage rates dip thanks to fed intervention

Mortgage rates are expected to take a slight dip now that the federal government has stepped into the market.

Early indications are that rates should fall about 0.25 percentage points immediately, said Al Blank, president and chief operating officer of First Place Bank.

The downward pressure comes as the U.S. Treasury Department announced Sunday that it was seizing control of Fannie Mae and Freddie Mac, which buy mortgages from banks and sell them to investors.

The massive commitment from Uncle Sam could push rates down further, but most of the future rate changes will be based on economic factors that are hard to predict, he added.

For the complete story, see Tuesday’s Vindicator and Vindy.com.