WASHINGTON (Reuters) - There are signs of improvement in U.S. housing markets but the idea of freezing mortgage rates for a period of time would be a mistake, the director of the Office of Federal Housing Enterprise Oversight said on Friday."You'd really cause market dislocations," said OFHEO director James Lockhart on CNBC television, when asked about a proposal put forward by Sen. Hillary Clinton, a contender for the Democratic presidential nomination."I think we are going to let the market work and interest rates have come down dramatically and people are going to be able to refinance," Lockhart said.He said lower rates should make it somewhat less painful for holders of adjustable-rate mortgages who face "resets" to higher rates in coming months.(Reporting by Glenn Somerville, editing by Walker Simon; )
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