U.S. puts faith in Fannie, Freddie: firms, once hemmed in, are freed for bigger role in aiding mortgage market

In an effort to reactivate the mortgage sector, government-sponsored companies Fannie Mae and Freddie Mac will be allowed to acquire an additional $200 billion of mortgage-backed securities, an approximate 10% of all new U.S. home mortgages in 2008. Article discusses the mortgage market, interest rates, and the companies' capital raising, and stock value.