Deflating Mortgage Rates

There is no shortage of market indicators predicting the government will soon intervene to steady Fannie Mae and Freddie Mac.

But there is one number in particular that could push the Treasury into doing something drastic: the cost of a 30-year mortgage.

The rate on a standard 30-year mortgage is currently 6.52%, almost exactly the same as a year ago. And that rate has risen sharply since the end of March, despite all that has been done to shore up the housing market. That includes massive mortgage purchases by Fannie and Freddie, expressions of government support for both companies and ...