A rise in the cost of debt in July and August put a crimp in Freddie Mac's mortgage buying.

Freddie's cost of long-term debt has risen 30 basis points, to 6.12%, from 5.82% at the end of the second quarter. Salomon Smith Barney analyst Thomas O'Donnell said in a research note. Mr. O'Donnell said that the difficult rate environment led Freddie Mac to lower its commitments to purchase mortgages to $6.5 billion, from $8.9 billion in July.

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