Mortgage interest rates are sitting on the bottom or so believes the interim head of Freddie Mac, CEO John Koskinen. Mr. Koskinen adds any subsequent drop from here would be “incremental”. After all the Fed buying in the mortgage backed securities and Treasuries markets in the last two weeks, I think he is probably right.

Mortgage Interest Rates

Freddie Mac said last Thursday in their survey, the average rate on 30-year fixed-rate mortgages dropped to 4.85% this week, from 4.98% last week; the lowest rate in the history the survey dating back to 1971. This also represented a 1% drop year over year.

The average rate on a 15-year fixed rate mortgage dropped to 4.58%, down from 4.61% week over week.

CEO John Koskinen

As we all know about 6 months ago, Freddie Mac, along with Fannie Mae, was taken over by the government, put into conservatorship, and given approximately $200 billion in taxpayer bailout money.

The Federal Housing Finance Agency now manages the two companies, Fannie Mae and Freddie Mac is therefore responsible for it’s executive placement of Mr. Koskinen as interim CEO effective March 13, 2009.

Prior to become Freddie Mac’s CEO, John Koskinen, according to the TradingMarkets.com, was:

“…president of the United States Soccer Foundation for four years, deputy mayor and city administrator of Washington, DC from 2000 to 2003.”

Wow!

I really can’t believe this is the best Obama can find to run one of the most important companies in our housing and mortgage markets.

It sounds a lot like when Bush put Mr. Michael Brown a former director of the International Arabian Horse Association in charge of FEMA. Then Katrina hit New Orleans and his incompetence was on display for the whole world to see.

So we are supposed to believe a guy who knows more about soccer than finance when it comes to mortgage rates.

This is the government we get after spending trillions and laying a mountain of debt on our kids?

Shame on you Mr. Obama. You really should not be pointing fingers at the GM board’s choice in CEO if you have this horrible CEO choice in your own backyard.

Good Luck!

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