Fannie and Freddie Get Bailout; Mortgage Rates Drop

By: Mary Miller, Director, Product Management, Mortgages | September 8, 2008

With yesterday’s news of the government takeover of Fannie Mae and Freddie Mac, there is a lot of speculation that mortgages rates will go down.

What have we seen on Zillow Mortgage Marketplace? Rates have taken a big dive downward today, with the national rate for a 30-year fixed mortgage at 5.75%. Last week’s national average was 6.13%, so that’s a drop of 6.2%.

The current average rate for a 15-year fixed mortgage is even lower at 5.39%, while the rate for a 5/1 adjustable rate mortgage is 5.66%.

This downward trend can also be seen at the state level. For example, the 30-year fixed mortgage rate in Arizona is currently at 5.80%, while one week ago today it was at 6.25%, for a drop of 7.2%. To see rates at the state level, visit Zillow Mortgage Marketplace’s rate charts and select the state from the location drop-down at the top of the chart.

Note: Rate information is current at time of publication. Rates can and do change frequently.