Government Bailout of Fannie Mae and Freddie Mac

Here is a link to a report from the Wall St. Journal about how the US Gov't has come to the rescue of Fannie and Freddie. 

http://blogs.wsj.com/developments/2008/09/08/government-bails-out-fannie-mae-and-freddie-mac/

This is good news for home buyers and sellers. Upon this announcement mortgage rates dropped approximately one-half of a percentage point. The effect of this drop in rates will most likely be increased activity and sales resulting in a reduction of housing inventory.