(Best Syndication News) Mortgage interest rates fell despite a mixed-bag of secondary lending trends (see the mortgage rate charts below). JPMorgan Chase, SunTrust, Bank of America, and U.S. Bank all lowered their rates despite a shift back into equities.
Investor confidence improved as President Barack Obama and congressional leaders met on Friday to discuss a solution to the fiscal cliff. All four Senate and House leaders spoke to reporters following the meeting.
House Speaker John Boehner told reporters that their meeting had been “constructive.” There were no assurances that a compromise will be reached by the January 1st deadline, but after several days of disappointing sessions on Wall Street, investors were ready for a respite.
Investors have been pricing-in the political uncertainty. If discussions look constructive, equity prices should rebound; but if there is a snag in the talks or worsening sovereign-debt issues in Europe, stocks could be pushed even lower.
The U.S. Treasury Department said that bond and note prices hardly budged Friday. The 10-year note yield, a common benchmark for the 30-year fixed rate mortgage (FRM), remained at 1.58 percent (see the benchmark chart below).
Secondary lenders drove interest rates lower. The Federal Home Loan Mortgage Corp (OTC:FMCC) lowered their 30-year 60-day required net yield (RNY) rate three bps to 2.7 percent. The Federal National Mortgage Association (OTC:FNMA) lowered their RNY rate one point to 2.834 percent.
After months of declines, the London InterBank Offered Rate (LIBOR) trended higher Friday. The 6-month LIBOR advanced to 0.526 percent and the 1-year LIBOR jumped to 0.86 percent.
Last week the New York Federal Reserve Bank said their Empire Manufacturing index fell 5.2 percent. On Friday the Federal Reserve Bank said that industrial production fell 0.4 percent.
The average30-year fixed rate mortgage fell three basis points (bps) to 3.413 percent (see the mortgage rate chart below). The difference between the 10-year note yield and the 30-year mortgage tightened three points to 1.833 percent.
The average FHA loan rate fell one basis point and the average 30-year VA rate fell just slightly.
JPMorgan Chase & Co. (NYSE:JPM) lowered their conventional rate two bps to 3.46 percent.
U.S. Bancorp (NYSE:USB) lowered their base rate 21 bps to 3.35 percent. The lender held their FHA and VA loan rates unchanged.
The average 15-year fixed mortgage rate fell three bps to 2.938 percent.
JPM lowered their 15-year rate two bps to 2.92 percent. The lender also lowered their 20-year loan rate three bps to 3.34 percent.
USB lowered their 15-year rate two bps to 2.86 percent.
The average 5-year adjustable rate mortgage (ARM) fell to 3.078 percent.
The average 30-year jumbo mortgage rate advanced slightly to 3.837 percent. The average 15-year jumbo fell five bps to 3.016 percent.
By: John Waters
|Friday||1 Day||5 Day||30 Day||100-Day||100-Day|
|11/16/12||Benchmark||Point Ch.||Point Ch.||Point Ch.||Point Ch.||Low|
|3.55||Bond Buyer's 20-yr bond index||0||-12||-12||-40||3.55|
|2.66||FHLMC 30 yr 30 days RNY||-3||-1||2||-20||1.59|
|2.7||FHLMC 30 yr 60 days RNY||-3||-1||2||-21||1.68|
|2.808||FNMA 30 yr 30 days RNY||-1||4||9||-27||2.635|
|2.834||FNMA 30 yr 60 days RNY||-1||4||7||-29||2.68|
|0.2075||1 Month LIBOR Rate||0||0||-1||-4||0.2075|
|0.3115||3 Month LIBOR Rate||0||0||-4||-15||0.31|
|0.526||6 Month LIBOR Rate||0||0||-9||-21||0.523|
|0.86||1 Year LIBOR Rate||0||0||-9||-21||0.8595|
|2.31||20-year Bond Yield Rate *||1||-3||-24||3||2.11|
|1.58||10-year Note Yield Rate *||0||-3||-17||-2||1.43|
|0.16||1-Year Note Yield Rate *||-1||-2||-2||-6||0.16|
|0.06||3-month Note Yield Rate *||-2||-3||-5||-3||0.06|
|1.038||11th District Cost of Funds||0||0||-3||-10||1.038|
|2.250||Difference 3-mo & 20 yr **||3||0||-19||6||2.01|
|1.833||Difference 10yr Note 30yr Loan||-3||4||16||-28||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|
|11/16/12||National Average APR*||Point Ch.||Point Ch.||Point Ch.||Point Ch.||Low|
|3.413%||Average 30 yr fixed||-3||1||-1||-30||3.31%|
|3.934%||Average 30 yr FHA||-1||-1||0||-24||3.81%|
|3.697%||Average 30-yr VA||0||4||-8||-21||3.60%|
|2.938%||Average 15 year FRM||-3||1||-5||-28||2.92%|
|3.078%||Average 5/1 ARM||0||1||-6||-11||3.06%|
|3.837%||30 Yr Fixed Jumbo||0||-2||-22||-38||3.78%|
|3.016%||15 Yr Fixed Jumbo||-5||-2||-12||-36||3.02%|
|11/16/12||U.S. Bank||1 Day||5 Day||30 Day||100-Day||100-Low|
|11/16/12||Chase||1 Day Pt||5 Day Pt||30 Day Pt||100-Day||100-Low|
|3.46%||30-Year Fixed Rate||-2||2||-12||-39||3.34%|
|3.34%||20-Year Fixed Rate||-3||0||-14||-29||3.24%|
|2.92%||15-Year Fixed Rate||-2||5||-7||-32||2.79%|
|* Average includes more banks than listed|
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