Current Mortgage Rates Today – Loan Rates Lower as PNC and Bank of America make adjustments

15-year fixed mortgage rates

(Best Syndication News) Mortgage interest rates pulled back today as the secondary lending market made adjustments (see the mortgage rate charts below). All of the major lenders, including JPMorgan Chase, Bank of America, Citibank, and Wells Fargo, lowered their mortgage loan rates.

Benchmarks

The Dow Jones Industrial Average (DJIA) and broader S&P 500 indexes spent most of the day in negative territory as investors held-back before the election. The disruption of power service and fuel distribution in the Northeast following Super-storm / Hurricane Sandy also held equities in check.

Gasoline prices in the region increased 14 cents over the last week. Thousands of people were also left homeless after the storm surge and storm. This will likely create a shortage of homes prompting temporary housing.

Energy companies in the region saw their stock prices fall. The share price of Consolidated Edison, Inc. (NYSE:ED) dropped more than two percent in Monday’s session. In the after-hours ED advanced 30 cents (+0.52%) to $58.30.

The share price of another northeast energy producer, Public Service Enterprise Group Inc. (NYSE:PEG), fell 1.2 percent during the trading day. In the after-hours PEG fell another 16 cents (-0.52%) to $30.56.

There was no compelling headline for investors to focus on. Economic news was positive providing some impetus for the upswing later in the day. The Institute for Supply Management (ISM) said that their non-manufacturing service index hit 54.2 in October.

The DJIA ended the day up 19 points. The S&P 500 gained 0.22 percent and the NASDAQ gained 0.59 percent.

The U.S. Department of Treasury data indicates that bond and note prices advanced. The 10-year note yield, a common benchmark for the 30-year fixed rate mortgage (FRM), fell three basis points (bps) to 1.72 percent (see the benchmark chart below).

Secondary lenders, including Fannie Mae and Freddie Mac, were able to lower their required net yield (RNY) rates. The Federal Home Loan Mortgage Corp (OTC:FMCC) lowered their 30-year 60-day RNY rate four bps to 2.78 percent. The Federal National Mortgage Association (OTC:FNMA) lowered their RNY rate four bps to 2.929 percent.

The London Interbank Offered Rate (LIBOR) continued to decline. The 6-month LIBOR hit 0.53575 percent and the 1-year LIBOR fell to 0.87375 percent.

30-Year Fixed Mortgage Rates

The average 30-year fixed mortgage rate fell four bps to 3.452 percent (see the mortgage rate chart below). The difference between the 30-year rate and the 10-year note yield tightened one point to 1.732 percent.

The average FHA loan rate fell one basis point to 3.934 percent and the average VA mortgage rate fell one point to 3.688 percent.

Bank of America Corp (NYSE:BAC) lowered their conventional mortgage rate two bps to 3.63 percent.

PNC Financial Services (NYSE:PNC) lowered their 30-year conventional rate 13 bps to 3.61 percent.

15-Year FRM and 5/1 ARM

The average 15-year fixed rate mortgage fell seven bps to 2.967 percent.

BAC lowered their 15-year rate two bps and PNC lowered their rate four bps. PNC also lowered their 20-year fixed mortgage rate 11 bps.

The average 5-year adjustable rate mortgage (ARM) fell four bps to 3.056 percent.

Jumbo Loans

The average 30-year jumbo mortgage rate fell six bps to 3.877 percent. The average 15-year jumbo mortgage rate fell five bps to 3.074 percent.

By: John Waters
Business Reporter

Benchmark Chart:

Monday 1 Day 5 Day 30 Day 100-Day 100-Day
11/05/12 Benchmark Point Ch. Point Ch. Point Ch. Point Ch. Low
3.250 Prime Rate 0 0 0 0 3.25
3.68 Bond Buyer's 20-yr bond index 0 0 -4 -24 3.61
2.74 FHLMC 30 yr 30 days RNY -4 -6 102 -20 1.59
2.78 FHLMC 30 yr 60 days RNY -4 -5 97 -21 1.68
2.885 FNMA 30 yr 30 days RNY -4 7 20 -26 2.635
2.929 FNMA 30 yr 60 days RNY -4 7 20 -25 2.68
0.208 1 Month LIBOR Rate 0 0 -1 -3 0.208
0.31175 3 Month LIBOR Rate 0 0 -5 -16 0.31175
0.53575 6 Month LIBOR Rate 0 0 -11 -20 0.53575
0.87375 1 Year LIBOR Rate 0 0 -10 -20 0.87375
2 Call Money 0 0 0 0 2
2.47 20-year Bond Yield Rate * -4 -1 0 17 2.11
1.72 10-year Note Yield Rate * -3 -2 2 12 1.43
0.19 1-Year Note Yield Rate * 0 1 1 1 0.16
0.11 3-month Note Yield Rate * 2 -3 0 2 0.08
1.038 11th District Cost of Funds 0 -3 -6 -10 1.038
2.360 Difference 3-mo & 20 yr ** -6 2 0 15 2.01
1.732 Difference 10yr Note 30yr Loan -1 -1 2 -36 1.641858
* Treasury Yields - DAILY
** Pos change - economy to improve soon (probit model)

Mortgage Rate Chart:

Best Syndication News Mortgage Survey
Monday 1 Day 5 Day 30 Day 100-Day 100-Day
11/05/12 National Average APR* Point Ch. Point Ch. Point Ch. Point Ch. Low
3.452% Average 30 yr fixed -4 -3 4 -24 3.31%
3.934% Average 30 yr FHA -1 -2 7 -27 3.81%
3.688% Average 30-yr VA -1 -2 7 -22 3.61%
2.967% Average 15 year FRM -7 -2 -2 -26 2.92%
3.056% Average 5/1 ARM -4 -3 -6 -10 3.06%
3.877% 30 Yr Fixed Jumbo -6 -12 -11 -35 3.88%
3.074% 15 Yr Fixed Jumbo -5 -5 2 -27 3.04%
11/05/12 PNC - National City Bank 1 Day 5 Day 30 Day 100-Day 100-Low
2.72% 10 Year Fixed -5 0 5 -3 2.44%
2.82% 15 Year Fixed -4 0 0 -5 2.48%
3.39% 20 Year Fixed -11 0 7 -11 3.14%
3.61% 30 Year Fixed -13 -1 3 -3 3.33%
Certain Areas
2.79% 10 Year Fixed -15 -3 13 -5 2.44%
2.91% 15 Year Fixed -14 -2 0 -25 2.49%
3.72% 20 Year Fixed -10 0 29 1 3.15%
3.97% 30 Year Fixed -3 -1 10 11 3.35%
11/05/12 Bank of America 1 Day Pt 5 Day Pt 30 Day Pt 100-Day 100-Low
3.63% 30-Year Fixed Rate -2 1 11 -14 3.37%
2.97% 15-Year Fixed-Rate -2 2 0 -16 2.81%
3.10% 5/1 ARM Rate -2 -7 2 -11 3.07%
Certain Areas
3.56% 30-Year Fixed Rate -36 -1 3 -13 3.41%
2.98% 15-Year Fixed Rate -58 -1 -3 -17 2.83%
3.06% 7/1 ARM -37 -2 3 -18 3.01%
3.09% 5/1 ARM -40 1 1 -11 3.02%
* Average includes more banks than listed

Click here for Current Mortgage Rates Today (MORE BANKS)

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