Freddie Mac said it will raise prices further and add underwriting restrictions for the mortgages it guarantees, because of "continued deterioration of credit quality and declining home values in most areas of the country."

Starting June 1, the McLean, Va., government-sponsored enterprise will assess a 30-basis-point fee on loans where the debt backed by the home is 80% or more of its value, and the borrower has a credit score of less than 740.

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