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 (NYSE: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.
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.
Additional disclosure: Long GSE preferreds.