Financial Times FT.com

Fed drive to cut mortgage rate fails

By Michael Mackenzie and Nicole Bullock in New York

Published: February 9 2009 02:00 | Last updated: February 9 2009 02:00

US Federal Reserve efforts to drive mortgage rates lower by buying home loans have faltered with rates rising over the past month.

The increase in rates is a disappointment to government officials who had hoped that a steep fall in house prices and low financing costs would lure new buyers into the nation's depressed housing market.

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