Fed drops rate.

Long -term mortgage rates were pushed downward last week as the fed continues to aggressively provide liquidity to the struggling credit markets. The Fed slashed interest rates again by 3/4 of a point and announced direct lending to troubled financial institutions. The Office of Federal Housing Enterprise Oversight also announced an initiative that should enable Freddie Mac and Fannie Mae to pump $200 billion into the mortgage market. This helped drive rates down as Freddie and Fannie will be able to buy more loans. Experts expect loans to happen faster now.