(Best Syndication News) Mortgage interest rates slipped while the secondary lenders provided mixed results (see the mortgage rate charts below). Citibank and PNC were among the lenders lowering their loans.
Stocks were higher Friday after two-straight days of harsh declines. Some of the worry involved the looming fiscal cliff while investors also adjusted their holdings to the certainty of Health Care Reform (Obamacare) and the possibility of higher taxes.
President Barack Obama drew a line in the sand Friday saying that he would not extend tax cuts to those making $250,000 or more a year. Republicans, led by House Speaker John Boehner, also reiterated their position that the Bush tax cuts should be extended for everyone.
But there is hope for a solution before the January 1st fiscal-cliff deadline. “I am open to compromise,” the President said Friday. “I am open to new ideas.” Boehner also said he was open to new sources of revenue.
The University of Michigan / Reuters consumer sentiment index advanced from 82.6 in October to 84.9 in November. That is the highest level since July 2007.
The Department of Agriculture forecast was better than expected, despite a drought in 2012. The corn crop, the worst in six years, is expected to be about 13 percent smaller than last year. Prices could still be higher until next year because of tight supplies.
The health care sector gained the most, up 0.37 percent, while the utilities sector sank the most, down 0.66 percent on Friday. The energy stock Ameren Corp (NYSE:AEE) fell more than three percent on disappointing third quarter earnings. Slacking energy sales were to blame.
The fiscal cliff crisis didn’t negatively affect all of the defense contractors. The Boeing Company (NYSE:BA) gained nearly three percent on news that they have more than 1,000 new orders this year. The share price of Lockheed Martin Corporation (NYSE:LMT) gained just 0.07 percent. After the close there was a shake-up in the top management at LMT.
The Dow Jones Industrial Average (DJIA) gained just four points while the S&P 500 and NASDAQ advanced 0.17 percent and 0.32 percent respectively.
The Treasury Department said that the 10-year note yield fell one basis point to 1.61 percent (see the benchmark chart below). The 10-year note yield is a common benchmark for the 30-year fixed rate mortgage (FRM).
Secondary lenders were mixed again. The Federal Home Loan Mortgage Corp (OTC:FMCC) raised their 30-year 60-day required net yield (RNY) rate three basis points (bps) to 2.71 percent. The Federal National Mortgage Association (OTC:FNMA) lowered their RNY rate 12 bps to 2.766 percent.
The average 30-year fixed rate mortgage fell three bps to 3.390 percent (see the mortgage rate chart below). The difference between the 10-year note yield and the 30-year loan tightened two bps to 1.780 percent.
The average FHA loan rate advanced one basis point to 3.937 percent while the average VA loan rate fell four bps to 3.650 percent.
Citigroup Inc. (NYSE:C) lowered their conventional rate one point to 3.32 percent.
PNC Financial Services (NYSE:PNC) lowered their 30-year rate 11 bps to 3.50 percent.
The average 15-year fixed rate mortgage (FRM) fell one basis point to 2.927 percent.
Citibank raised their 15-year rate two bps to 2.85 percent.
PNC lowered their 20-year rate four bps to 3.35 percent. The lender’s 15-year rate fell seven bps to 2.76 percent.
The average 5-year adjustable rate mortgage (ARM) fell slightly to 3.070 percent.
By: John Waters
|Friday||1 Day||5 Day||30 Day||100-Day||100-Day|
|11/09/12||Benchmark||Point Ch.||Point Ch.||Point Ch.||Point Ch.||Low|
|3.67||Bond Buyer's 20-yr bond index||0||-1||-5||-28||3.61|
|2.67||FHLMC 30 yr 30 days RNY||3||-7||91||-26||1.59|
|2.71||FHLMC 30 yr 60 days RNY||3||-7||87||-27||1.68|
|2.766||FNMA 30 yr 30 days RNY||-10||-12||6||-39||2.635|
|2.789||FNMA 30 yr 60 days RNY||-12||-14||4||-41||2.68|
|0.209||1 Month LIBOR Rate||0||0||0||-4||0.208|
|0.31||3 Month LIBOR Rate||0||0||-5||-16||0.31|
|0.5265||6 Month LIBOR Rate||0||-1||-10||-21||0.5265|
|0.862||1 Year LIBOR Rate||0||-1||-10||-21||0.862|
|2.34||20-year Bond Yield Rate *||-1||-13||-7||4||2.11|
|1.61||10-year Note Yield Rate *||-1||-11||-3||-2||1.43|
|0.18||1-Year Note Yield Rate *||-2||-1||1||-1||0.16|
|0.09||3-month Note Yield Rate *||-1||-2||0||0||0.08|
|1.038||11th District Cost of Funds||0||0||-3||-10||1.038|
|2.250||Difference 3-mo & 20 yr **||0||-11||-7||4||2.01|
|1.780||Difference 10yr Note 30yr Loan||-2||5||7||-32||1.641858|
|* Treasury Yields - DAILY|
|** Pos change - economy to improve soon (probit model)|
Mortgage Rate Chart:
|Best Syndication News Mortgage Survey|
|Friday||1 Day||5 Day||30 Day||100-Day||100-Day|
|11/09/12||National Average APR*||Point Ch.||Point Ch.||Point Ch.||Point Ch.||Low|
|3.390%||Average 30 yr fixed||-3||-6||4||-34||3.31%|
|3.937%||Average 30 yr FHA||1||0||6||-31||3.81%|
|3.650%||Average 30-yr VA||-4||-4||-4||-27||3.60%|
|2.927%||Average 15 year FRM||-1||-4||-2||-33||2.92%|
|3.070%||Average 5/1 ARM||0||1||-5||-12||3.06%|
|3.854%||30 Yr Fixed Jumbo||1||-2||-9||-42||3.78%|
|3.032%||15 Yr Fixed Jumbo||1||-4||-2||-34||3.03%|
|11/09/12||Citi Financial||1 Day||5 Day||30 Day||100-Day||100-Low|
|3.32%||30 Year Fixed||-1||-9||-20||-86||3.32%|
|2.85%||15 Year Fixed||2||2||-20||-93||2.81%|
|11/09/12||PNC - National City Bank||1 Day||5 Day||30 Day||100-Day||100-Low|
|2.69%||10 Year Fixed||-8||-3||21||-10||2.44%|
|2.76%||15 Year Fixed||-7||-5||25||-18||2.48%|
|3.35%||20 Year Fixed||-4||-4||18||-27||3.14%|
|3.50%||30 Year Fixed||-11||-11||15||-24||3.33%|
|2.79%||10 Year Fixed||-5||0||28||-20||2.44%|
|2.91%||15 Year Fixed||-13||0||25||-27||2.49%|
|3.47%||20 Year Fixed||-32||-25||25||-32||3.15%|
|3.89%||30 Year Fixed||-9||-8||40||1||3.35%|
|* Average includes more banks than listed|
Important: The material on Best Syndication is for informational purposes only and is not meant to be advice. Authors may have or will receive monetary compensation from the company's product/s mentioned. You should always seek professional advice before making any legal, financial or medical decisions and this website cannot substitute or replace any trained professional consultation.
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