(Best Syndication News) Mortgage interest rates advanced today as investors were optimistic that fiscal cliff negotiations will be fruitful (see the mortgage rate charts below). JPMorgan Chase lowered their rate, but most banks, including KeyBank and PNC, raise their loan rates.
Equity markets have been suffering from uncertainty surrounding the fiscal cliff – a series of tax increases and spending cuts that will occur if Congress and the Whitehouse fail to reach an agreement by December 31st 2012.
The fear of austerity in the United States has put downward pressure on equities since the election. The CEO of Vanguard, William McNabb, warned investors not to make any rash decisions or changes in their portfolio. McNabb would like to see an agreement made that would deal with the nation’s fiscal issues over the long run.
The National Association of Realtors (NAR) said that existing home sales increased 10.9 percent in October compared to a year earlier (YOY). The median price home increased to $178,600. The number of homes for sale is also falling.
The good real estate news helped the construction services industry. The share price of PulteGroup, Inc. (NYSE:PHM) jumped 1.4 percent during Monday’s session. In the after-hours PHM increased another eight cents (+0.50%) to $15.98.
The Dow Jones Industrial Average (DJIA) advanced 207 points Monday. The broader S&P 500 and tech-heavy NASDAQ gained 1.99 percent and 2.21 percent respectively.
The U.S. Treasury Department data showed capital markets migrating away from the U.S. government securities. Prices dropped pushing yields higher. The 10-year note yield, a common benchmark for the 30-year mortgage, rose three basis points (bps) to 1.61 percent (see the benchmark chart below).
Freddie Mac didn’t change their required net yield (RNY) rates, however Fannie Mae lowered them. The Federal National Mortgage Association (OTC:FNMA) 30-year 60-day RNY rate fell one basis point to 2.824 percent.
The London InterBank Offered Rate (LIBOR) was mostly unchanged. The 6-month LIBOR advanced to 0.528 percent.
The average 30-year fixed rate mortgage (FRM) climbed one basis point to 3.427 percent (see the mortgage rate chart below). The difference between the 10-year note yield and the 30-year mortgage tightened two points to 1.817 percent.
The average FHA loan rate advanced to 3.937 percent and the average VA loan rate hit 3.702 percent.
PNC Financial Services (NYSE:PNC) raised their conventional 30-year mortgage one point to 3.62 percent.
KeyCorp (NYSE:KEY) raised their rate two bps to 3.60 percent.
The average 15-year fixed rate mortgage advanced one point to 2.946 percent.
PNC held their 15-year rate unchanged, however the bank lifted their 20-year rate eight bps to 3.47 percent.
KEY raised their 15-year rate less than one point to 2.98 percent.
The average 5-year adjustable rate mortgage (ARM) fell two bps to 3.057 percent.
By: John Waters
|Monday||1 Day||5 Day||30 Day||100-Day||100-Day|
|11/19/12||Benchmark||Point Ch.||Point Ch.||Point Ch.||Point Ch.||Low|
|3.55||Bond Buyer's 20-yr bond index||0||0||-6||-40||3.55|
|2.66||FHLMC 30 yr 30 days RNY||0||0||5||-25||1.59|
|2.7||FHLMC 30 yr 60 days RNY||0||0||5||-26||1.68|
|2.797||FNMA 30 yr 30 days RNY||-1||1||5||-28||2.635|
|2.824||FNMA 30 yr 60 days RNY||-1||1||4||-30||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|
|0.528||6 Month LIBOR Rate||0||0||-9||-21||0.523|
|0.86||1 Year LIBOR Rate||0||0||-9||-21||0.8595|
|2.34||20-year Bond Yield Rate *||3||3||-18||-4||2.11|
|1.61||10-year Note Yield Rate *||3||2||-13||-6||1.43|
|0.16||1-Year Note Yield Rate *||0||-2||-2||-5||0.16|
|0.09||3-month Note Yield Rate *||3||-2||-1||0||0.06|
|1.038||11th District Cost of Funds||0||0||-3||-8||1.038|
|2.250||Difference 3-mo & 20 yr **||0||5||-17||-4||2.01|
|1.817||Difference 10yr Note 30yr Loan||-2||0||13||-24||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|
|11/19/12||National Average APR*||Point Ch.||Point Ch.||Point Ch.||Point Ch.||Low|
|3.427%||Average 30 yr fixed||1||2||0||-30||3.31%|
|3.937%||Average 30 yr FHA||0||0||2||-27||3.81%|
|3.702%||Average 30-yr VA||0||5||-5||-21||3.60%|
|2.946%||Average 15 year FRM||1||2||-5||-29||2.92%|
|3.057%||Average 5/1 ARM||-2||-2||-7||-14||3.06%|
|3.803%||30 Yr Fixed Jumbo||-3||-5||-26||-47||3.78%|
|3.012%||15 Yr Fixed Jumbo||0||-2||-13||-36||3.01%|
|11/19/12||PNC - National City Bank||1 Day||5 Day||30 Day||100-Day||100-Low|
|2.77%||10 Year Fixed||0||5||23||0||2.44%|
|2.85%||15 Year Fixed||0||4||25||-4||2.48%|
|3.47%||20 Year Fixed||8||10||25||-4||3.14%|
|3.62%||30 Year Fixed||1||2||17||-12||3.33%|
|2.84%||10 Year Fixed||0||3||30||-10||2.44%|
|3.03%||15 Year Fixed||0||11||30||-13||2.49%|
|3.80%||20 Year Fixed||0||21||47||8||3.15%|
|3.99%||30 Year Fixed||0||1||39||12||3.35%|
|11/19/12||Key Bank||1 Day Pt||5 Day Pt||30 Day Pt||100-Day||100-Low|
|3.60%||30-yr Fixed Rate||2||2||0||-25||3.49%|
|2.98%||15-yr Fixed Rate||0||1||-1||-26||2.89%|
|Adjustable Rate Mortgage|
|* 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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