Financial Times FT.com

US housing rescue ‘could cost $25bn’

By James Politi in Washington and Nicole Bullock and Michael Mackenzie in New York

Published: July 22 2008 17:58 | Last updated: July 23 2008 00:32

The US Treasury’s rescue plan for Fannie Mae and Freddie Mac could cost taxpayers $25bn, congressional researchers said on Tuesday as evidence mounted that turmoil at the two companies is helping push up interest rates for homebuyers.

US mortgage rates have hit their highest levels in about a year amid rising Treasury yields and growing fears among investors that Fannie and Freddie will cut back their purchases of home loans and mortgage securities.

You have viewed your allowance of free articles. If you wish to view more, click the button below.

Read this