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David Sims
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I am a Certified Public Accountant and currently work as a Senior Financial Analyst at a Fortune 500 company. In the past, I worked as a Series 7 licensed stock broker, auditor at a Big 4 accounting firm, general ledger accountant and systems administrator at a small private company. As you can... More
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  • 30-Year Fixed Rate Hits New Low 0 comments
    Jul 5, 2012 2:01 PM | about stocks: FMCC.OB, FNMA.OB, NLY

    This morning Freddie Mac released information showing that 30-Year Fixed Rate Mortgages hit all-time lows, never before seen. Freddie reports:

    • 30-year fixed-rate mortgage (FRM) averaged 3.62 percent with an average 0.8 point for the week ending July 5, 2012.
    • 15-year FRM this week averaged 2.89 percent with an average 0.7 point.

    (click to enlarge)

    In comparison, mortgages originated in October of 1981 had rates over 18%. A $200,000 FRM with a 3.62% rate would have a monthly payment somewhere around $1,200. A $200,000 FRM with an 18% rate would have a mortgage payment around $3,300.

    As the Fed extends Operation Twist, consumers should continue to benefit from this historical rate cut and stimulus.

    Disclosure: I am long FMCC.OB, FNMA.OB.

    Additional disclosure: Long GSE preferreds.

    Themes: Mortgage Rates, Real Estate Stocks: FMCC.OB, FNMA.OB, NLY
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