(Best Syndication News) Although the weekly trend is lower, some lenders did raise their mortgage interest rates today (see the mortgage rate charts below). Banks were closed for Veterans’ Day but some, including Bank of America and KeyBank, raised their rates.
The earnings season has been frustrating for many investors as companies report disappointing returns. Profits were up only 2.3 percent in the third quarter, according to S&P Capital IQ; but Thompson / Reuters calculates an overall loss in the market.
European debt concerns and the looming fiscal cliff in the United States played a role in the equities loss last week. Some corporations, including Bed Bath & Beyond Inc. (NASDAQ:BBBY), FedEx Corporation (NYSE:FDX), and Union Pacific Corporation (NYSE:UNP) have already said that they are having difficulty preserving margin.
The fiscal cliff has concerned many other corporations prompting some of them to begin a hedging strategy. Some of them are also announcing layoffs to cut costs before the January 1st deadline.
The New York Stock Exchange experienced a problem Monday causing issues with the trading of 200 different stocks. This didn’t affect the market trend much because of lackluster volume; the Dow Jones Industrial Average (DJIA) fell less than one point (-0.00%). The Dow was unchanged; however the broader S&P 500 was up 0.01 percent and the tech-heavy NASDAQ was down 0.02 percent.
Utilities have been a loser over the last week as investors prepare for a possible increase in taxes. The utility sector was down another 0.88 percent on Monday.
The International Energy Agency (IEA) said the United States could be a net exporter of natural gas by 2020. The agency also believes the U.S. could be self-sufficient in its energy needs by 2035. This was good news for servicers like Houston based Dril-Quip, Inc. (NYSE:DRQ) which was up nearly three percent in one day. The U.S. Energy Information Administration (EIA) said that oil prices fell $2.00 a barrel last week.
The New York Federal Reserve bank said that about 5 million Americans are behind on their student loans.
The 10-year note yield is down 17 basis points (bps) over the last week (see the benchmark chart below). The secondary lenders followed a similar trend, dropping their required net yield (RNY) rates. The Federal Home Loan Mortgage Corp (OTC:FMCC) lowered their 30-year 60-day RNY rate 13 bps over the last week while the Federal National Mortgage Association (OTC:FNMA) lowered their key RNY rate 15 bps.
The average 30-year fixed rate mortgage climbed two bps to 3.407 percent. (See the mortgage rate chart below). The difference between the 10-year note yield and the 30-year mortgage expanded two points to 1.797 percent.
The average FHA loan rate advanced to 3.940 percent and the average VA mortgage rate climbed to 3.654 percent.
KeyCorp (NYSE:KEY) raised their conventional 30-year rate five bps to 3.61 percent.
Bank of America Corp (NYSE:BAC) held their base rate unchanged, however the lender raised their rate in certain areas to 3.45 percent.
The average 15-year fixed rate mortgage (FRM) advanced less than one basis point to 2.927 percent.
KEY raised their rate to 2.98 percent and BAC raised their rate to 2.94 percent.
The average 5-year adjustable rate mortgage (ARM) climbed to 3.072 percent.
By: John Waters
|Monday||5 Day||30 Day||100-Day||100-Day||100-Day|
|11/12/12||Benchmark||Point Ch.||Point Ch.||Point Ch.||High||Low|
|3.67||Bond Buyer's 20-yr bond index||0||0||-28||3.95||3.61|
|2.67||FHLMC 30 yr 30 days RNY||-13||19||-28||2.95||1.59|
|2.71||FHLMC 30 yr 60 days RNY||-13||19||-29||3||1.68|
|2.766||FNMA 30 yr 30 days RNY||-13||8||-35||3.156||2.635|
|2.789||FNMA 30 yr 60 days RNY||-15||6||-37||3.198||2.68|
|0.2085||1 Month LIBOR Rate||0||-1||-4||0.24875||0.208|
|0.31||3 Month LIBOR Rate||0||-4||-15||0.4616||0.31|
|0.5265||6 Month LIBOR Rate||-1||-10||-21||0.7364||0.5265|
|0.862||1 Year LIBOR Rate||-1||-10||-21||1.0695||0.862|
|2.34||20-year Bond Yield Rate *||-18||-7||-3||2.68||2.11|
|1.61||10-year Note Yield Rate *||-17||-3||-8||1.88||1.43|
|0.18||1-Year Note Yield Rate *||-1||2||-1||0.22||0.16|
|0.09||3-month Note Yield Rate *||-1||0||0||0.14||0.08|
|1.038||11th District Cost of Funds||0||-3||-10||1.14||1.038|
|2.250||Difference 3-mo & 20 yr **||-17||-7||-3||2.57||2.01|
|1.797||Difference 10yr Note 30yr Loan||9||8||-25||2.1175167||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|
|11/12/12||National Average APR*||Point Ch.||Point Ch.||Point Ch.||Point Ch.||Low|
|3.407%||Average 30 yr fixed||2||-8||5||-33||3.31%|
|3.940%||Average 30 yr FHA||0||-1||8||-31||3.81%|
|3.654%||Average 30-yr VA||0||-4||0||-27||3.60%|
|2.927%||Average 15 year FRM||0||-7||-2||-32||2.92%|
|3.072%||Average 5/1 ARM||0||1||-5||-12||3.06%|
|3.854%||30 Yr Fixed Jumbo||0||7||-12||-42||3.78%|
|3.032%||15 Yr Fixed Jumbo||0||-4||-6||-34||3.03%|
|11/12/12||Key Bank||1 Day Pt||5 Day Pt||30 Day Pt||100-Day||100-Low|
|3.61%||30-yr Fixed Rate||5||-4||8||-25||3.49%|
|2.98%||15-yr Fixed Rate||0||-5||5||-18||2.89%|
|Adjustable Rate Mortgage|
|11/12/12||Bank of America||1 Day Pt||5 Day Pt||30 Day Pt||100-Day||100-Low|
|3.50%||30-Year Fixed Rate||0||-16||-3||-39||3.37%|
|3.09%||5/1 ARM Rate||0||-4||-1||-16||3.07%|
|3.45%||30-Year Fixed Rate||0||-20||-9||-34||3.41%|
|2.94%||15-Year Fixed Rate||0||-8||1||-27||2.83%|
|* 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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