NATION

NATION

Mortgage rates fall

WASHINGTON — Rates on 30-year mortgages dropped sharply this week, falling to the lowest level in five months, as the government’s dramatic takeover of mortgage giants Fannie Mae and Freddie Mac had the hoped-for impact of lowering mortgage rates.

Freddie Mac reported Thursday its nationwide survey found 30-year, fixed-rate mortgages dipped to 5.93 percent this week, down from 6.35 percent last week. The sharp decline pushed the 30-year rate below 6 percent for the first time since late May and marked the lowest level for this rate since they averaged 5.88 percent the week of April 17.

Rates on 15-year, fixed-rate mortgages, a popular choice for refinancing, fell to 5.54 percent, down from 5.90 percent last week.

Executives expect to cut payrolls, sales to improve

WASHINGTON — Nearly one-third of the country’s top executives expect to cut payrolls in the coming months as companies cope with a weakened economy dogged by housing, credit and financial problems.

At the same time, a survey by the Business Roundtable, released Thursday, showed most executives expect sales and capital investment to remain at current levels or even improve over the next six months.

The challenging economic environment is forcing companies to produce more with fewer workers, a key driver of recent increases in U.S. productivity.

Associated Press