Current Mortgage Rates Today – Citibank and Bank of America Raise Rates

Chart of VA Mortgage Rates

(Best Syndication News) Mortgage interest rates fell today as money flowed away from the government safe-havens (see the mortgage rate charts below). JPMorgan Chase, PNC, KeyBank, and U.S. Bank were among the lenders lowering their rates; however Citibank and Bank of America moved in the opposite direction.

Benchmarks

Federal Reserve Chairman Ben Bernanke said that lawmakers need to solve the fiscal-cliff issue before the December 31st deadline. The central bank doesn’t have enough tools to deal with another recession next year, according to the Fed Chair.

Bernanke made his comments at The Economic Club of New York. He didn’t provide any specific recommendations, but said Washington needs to think creatively to raise the debt limit.

The Fed will keep interest rates low into 2015, but there are limits to what they can do. Some companies are already making plans and taking action before the economy falls off the cliff. Investors are already factoring in a planned recession.

Traders fled from Hewlett-Packard Company (NYSE:HPQ) Tuesday after the computer giant announced that there were problems associated with the acquisition of Autonomy. HPQ said that sales were reported even when the customer didn’t buy.

The news disappointed investors, driving the stock down more than eleven percent during the trading session. There was a respite in the slide in the after-hours. The share price of HPQ gained five cents (+0.43%) to $11.76 after the session closed.

The three major U.S. indexes were lower throughout much of the day, but began to gain ground after the Fed Chairman made his comments. The Dow Jones Industrial Average (DJIA) closed down 7.45 points while the broader S&P 500 and tech-heavy NASDAQ indices moved into positive territory.

The U.S. Treasury Department data showed that competition for government-backed securities waned. This caused prices to drop and yields to climb. The 10-year note yield, a common benchmark for the 30-year fixed rate mortgage, advanced five basis points (bps) to 1.66 percent (see the benchmark chart below).

The 20-year bond-buyer’s index fell 14 bps to 3.41 percent last week.

Secondary lenders, including Fannie Mae and Freddie Mac, raised their required net yield (RNY) rates. The Federal Home Loan Mortgage Corp (OTC:FMCC) raised their 30-year 60-day RNY rate four bps to 2.74 percent. The Federal National Mortgage Association (OTC:FNMA) raised their RNY rate one point to 2.83 percent.

The London InterBank Offered Rate (LIBOR) was lower again. The 1-year LIBOR was unchanged; however the 6-month LIBOR fell to 0.527 percent.

30-Year Fixed Mortgage Rates

The average 30-year conventional rate fell two bps to 3.411 percent (see the mortgage rate chart below). The difference between the 10-year note yield and the 30-year rate tightened seven bps to 1.751 percent.

The average FHA loan rate fell one basis point to 3.927 percent and the average VA loan rate fell to 3.698 percent.

Citigroup Inc. (NYSE:C) raised their 30-year fixed rate mortgage (FRM) one basis point to 3.43 percent.

Bank of America Corp (NYSE:BAC) held their rate unchanged, but in certain areas raised their rate to 3.52 percent.

15-Year FRM and 5/1 ARM

The average 15-year fixed mortgage rate advanced one basis point to 2.951 percent.

Citibank raised their 15-year rate five bps to 2.90 percent. BAC raised their rate four bps to 2.96 percent.

The average 5-year adjustable rate mortgage (ARM) advanced less than one point to 3.061 percent.

By: John Waters
Business Reporter

Benchmark Chart:

Tuesday 1 Day 5 Day 30 Day 100-Day 100-Day
11/20/12 Benchmark Point Ch. Point Ch. Point Ch. Point Ch. Low
3.250 Prime Rate 0 0 0 0 3.25
3.41 Bond Buyer's 20-yr bond index -14 -14 -20 -54 3.41
2.7 FHLMC 30 yr 30 days RNY 4 -1 11 -15 1.59
2.74 FHLMC 30 yr 60 days RNY 4 -1 11 -16 1.68
2.802 FNMA 30 yr 30 days RNY 0 -4 4 -30 2.635
2.83 FNMA 30 yr 60 days RNY 1 -3 4 -31 2.68
0.2075 1 Month LIBOR Rate 0 0 -1 -4 0.2075
0.3105 3 Month LIBOR Rate 0 0 -3 -15 0.31
0.527 6 Month LIBOR Rate 0 0 -8 -21 0.523
0.86 1 Year LIBOR Rate 0 0 -8 -21 0.8595
2 Call Money 0 0 0 0 2
2.4 20-year Bond Yield Rate * 6 9 -8 10 2.11
1.66 10-year Note Yield Rate * 5 7 -6 5 1.43
0.16 1-Year Note Yield Rate * 0 -2 -2 -5 0.16
0.08 3-month Note Yield Rate * -1 -2 -2 -2 0.06
1.038 11th District Cost of Funds 0 0 -3 -8 1.038
2.320 Difference 3-mo & 20 yr ** 7 11 -6 12 2.01
1.751 Difference 10yr Note 30yr Loan -7 -10 3 -32 1.641858
* Treasury Yields - DAILY
** Pos change - economy to improve soon (probit model)

Mortgage Rate Chart:

Best Syndication News Mortgage Survey
Tuesday 1 Day 5 Day 30 Day 100-Day 100-Day
11/20/12 National Average APR* Point Ch. Point Ch. Point Ch. Point Ch. Low
3.411% Average 30 yr fixed -2 -3 -3 -27 3.31%
3.927% Average 30 yr FHA -1 -2 1 -23 3.81%
3.698% Average 30-yr VA 0 -1 -5 -17 3.60%
2.951% Average 15 year FRM 1 0 -4 -25 2.92%
3.061% Average 5/1 ARM 0 -2 -7 -13 3.06%
3.801% 30 Yr Fixed Jumbo 0 -4 -25 -41 3.78%
3.006% 15 Yr Fixed Jumbo -1 -2 -14 -33 3.01%
11/20/12 Citi Financial 1 Day 5 Day 30 Day 100-Day 100-Low
3.43% 30 Year Fixed 1 4 -21 -61 3.32%
2.90% 15 Year Fixed 5 7 -18 -65 2.81%
11/20/12 Bank of America 1 Day Pt 5 Day Pt 30 Day Pt 100-Day 100-Low
3.52% 30-Year Fixed Rate 0 0 -1 -24 3.37%
2.96% 15-Year Fixed-Rate 4 5 -2 -18 2.81%
3.09% 5/1 ARM Rate 1 1 -3 -12 3.07%
Certain Areas
3.52% 30-Year Fixed Rate 0 1 0 -19 3.41%
2.98% 15-Year Fixed Rate 4 6 -1 -20 2.83%
3.06% 7/1 ARM 2 1 -3 -19 3.01%
3.08% 5/1 ARM 1 1 -2 -14 3.02%
* Average includes more banks than listed

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