Long-term fixed mortgage rates tumbled almost a half-point after the Fed said last week that it would buy $500 billion in securities from Fannie Mae and Freddie Mac. The Fed will also buy another $100 billion in direct debt issued by the GSEs. 30-year fixed rate mortgages averaged 5.53% this week compared to 5.97% last week according to Freddie Mac's mortgage market survey. Economists at Freddie Mac noted that mortgage applications doubled in the past week with refinancing applications almost tripling in response to the steep rate decline in rates.
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