The cost to Freddie Mac and Fannie Mae of raising capital is getting increasingly more prohibitive, making it likely that the government will have to inject cash into the largest U.S. mortgage-finance companies, reports Bloomberg News.

Declines in the common stocks of the government-chartered companies accelerated last week to more than 90% for the year and yields on their preferred shares more than doubled on speculation Treasury Secretary Henry Paulson may need to bail them out, reducing or wiping out the value of the securities.

As long as a rescue is likely, investors will be reluctant to take part in any offering, said

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