30-Year Mortgage Rates Averaged 3.66 Percent in 2012 -- The Lowest in 65 Years
18 Janvier 2013 - 2:20PM
Marketwired
High yielding mortgage REITs after an impressive start to 2012,
began to show volatility in the fourth quarter. Increases in
prepayments and stimulus measures by the Federal Reserve have
pressured spreads and as a result a number of mortgage-based REITs
have lowered their dividends. Research Driven Investing examines
investing opportunities on Real Estate Investment Trusts and
provides equity research on American Capital Agency Corp. (NASDAQ:
AGNC) and Hatteras Financial Corp. (NYSE: HTS).
Access to the full company reports can be found at:
www.RDInvesting.com/AGNC www.RDInvesting.com/HTS
REITs trade like stocks, but by law, they must pay out 90
percent of their taxable income to shareholders as dividends.
Dividend returns for Mortgage REITs are partially dependent on
interest rate spreads.
Freddie Mac on Thursday reported that the average U.S. rate on
the 30-year fixed mortgage fell to 3.38 percent, hovering near the
40 year low of 3.31 percent seen in November. According to Freddie
Mac 30-year mortgage rates average 3.66 percent in 2012, which was
the lowest average seen in 65 years. Low mortgage rates allow
homeowners who are underwater with their mortgages to refinance,
and in turn increase prepayments on mortgages. Mortgage prepayment
rates at the beginning of the fourth quarter 2012 soared to 7 year
highs.
Research Driven Investing releases regular market updates on
Real Estate Investment Trusts so investors can stay ahead of the
crowd and make the best investment decisions to maximize their
returns. Take a few minutes to register with us free at
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American Capital Agency is a real estate investment trust that
invests in agency pass-through securities and collateralized
mortgage obligations for which the principal and interest payments
are guaranteed by a U.S. Government agency or a U.S.
Government-sponsored entity. The Company's average net interest
rate spread for the third quarter was 1.42%, a decrease of 23 bps
from the second quarter of 1.65%.
Hatteras Financial is a real estate investment trust formed in
2007 to invest in single-family residential mortgage pass-through
securities guaranteed or issued by U.S. Government agencies or U.S.
Government-sponsored entities, such as Fannie Mae, Freddie Mac or
Ginnie Mae. The Company's net interest margin decreased to 1.22%
for the third quarter of 2012 from 1.49% in the second quarter of
2012.
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above-mentioned publicly traded companies. Research Driven
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