Current Mortgage Rates Today – Bank of America and Citibank Lower Loan Rates

VA Loan Rate

(Best Syndication News) Mortgage interest rates trended lower today as secondary lenders competed in the capital markets (see the mortgage rate charts below). JPMorgan Chase, KeyBank, Bank of America, and Citibank were among the banks lowering their rates.

Benchmarks

Pessimism spread through the equity markets as very little progress was made in Washington concerning the fiscal cliff. The Whitehouse rejected a proposal by Republicans prompting House Speaker John Boehner to tell reporters that the ball is back in President’s court.

The President needs to provide a proposal that could pass both houses of Congress, Boehner said. A solution to the fiscal cliff – an increase in taxes and a reduction in government spending to take effect on January 1st 2013 – continues to be illusive.

Corporations have been preparing for a renewed recession. Wal-Mart Stores, Inc. (NYSE:WMT), Wynn Resorts, Limited (NASDAQ:WYNN), and hundreds of other companies have bumped up their quarterly dividends to December. Besides a special dividend, some corporations are prepared to reduce their workforce and make other cuts in spending to compensate for the fiscal cliff.

Investors are also preparing for the recession by building the cost into the stock prices. The Dow Jones Industrial Average (DJIA) ended the day down nearly 14 points. The S&P 500 also slipped 0.17 percent.

State governors met with President Barack Obama Tuesday to discuses their concerns about the fiscal cliff. A reduction in tax receipts could force state governments to reduce services and cut spending even further. This could feed and worsen the recession.

The U.S. Treasury Department data indicated that investors were turning to safe-havens. The increased competition for bonds and notes pushed prices higher and drove yields even lower. The 10-year note yield fell one basis point to 1.62 percent (see the benchmark chart below).

The Bond Buyers 20-year bond index fell eight basis points (bps) to 3.20 percent last week.

The Federal Home Loan Mortgage Corp (OTC:FMCC) lowered their 30-year 60-day required net yield (RNY) rate two bps to 2.69 percent. The Federal National Mortgage Association (OTC:FNMA) lowered their rate less than one point to 2.825 percent.

The London InterBank Offered Rate (LIBOR) was mostly lower.

30-Year Fixed Mortgage Rates

The average 30-year fixed rate mortgage (FRM) fell two bps to 3.386 percent (see the mortgage rate charts below). The difference between 10-year note yield and the 30-year mortgage tightened one point to 1.766 percent.

The average FHA loan rate fell one point to 3.915 percent and the average VA loan rate fell to 3.688 percent.

Citigroup Inc. (NYSE:C) lowered their conventional loan rate one basis point to 3.43 percent.

Bank of America Corp (NYSE:BAC) lowered their 30-year rate one point to 3.50 percent.

15-Year FRM and 5/1 ARM

The average 15-year fixed rate mortgage fell one basis point to 2.952 percent.

Citigroup lowered their 15-year rate two bps to 2.97 percent. BAC lowered their rate two points to 2.90 percent.

The average 5-year adjustable rate mortgage (ARM) fell one point to 3.065 percent.

By: John Waters
Business Reporter

Benchmark Chart:

Tuesday 1 Day 5 Day 30 Day 100-Day 100-Day
12/04/12 Benchmark Point Ch. Point Ch. Point Ch. Point Ch. Low
3.250 Prime Rate 0 0 0 0 3.25
3.29 Bond Buyer's 20-yr bond index -8 -8 -39 -65 3.29
2.66 FHLMC 30 yr 30 days RNY -1 1 -10 -8 1.59
2.69 FHLMC 30 yr 60 days RNY -2 -1 -11 -9 1.68
2.796 FNMA 30 yr 30 days RNY 0 1 2 -30 2.635
2.825 FNMA 30 yr 60 days RNY 0 1 1 -32 2.68
0.213 1 Month LIBOR Rate 0 0 0 -3 0.2075
0.3105 3 Month LIBOR Rate 0 0 0 -14 0.31
0.525 6 Month LIBOR Rate 0 0 -3 -20 0.523
0.859 1 Year LIBOR Rate 0 0 -3 -21 0.859
2 Call Money 0 0 0 0 2
2.36 20-year Bond Yield Rate * -1 0 -17 18 2.11
1.62 10-year Note Yield Rate * -1 -1 -17 12 1.43
0.18 1-Year Note Yield Rate * 0 0 0 0 0.16
0.1 3-month Note Yield Rate * 0 0 -1 0 0.06
1.011 11th District Cost of Funds 0 -3 -6 -11 1.011
2.260 Difference 3-mo & 20 yr ** -1 0 -16 18 2.01
1.766 Difference 10yr Note 30yr Loan -1 3 10 -31 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
12/04/12 National Average APR* Point Ch. Point Ch. Point Ch. Point Ch. Low
3.386% Average 30 yr fixed -2 2 -7 -19 3.31%
3.915% Average 30 yr FHA -1 3 -6 -8 3.81%
3.688% Average 30-yr VA 0 7 -5 -8 3.60%
2.952% Average 15 year FRM -1 2 -4 -18 2.92%
3.065% Average 5/1 ARM -1 0 -2 -10 3.06%
3.780% 30 Yr Fixed Jumbo -6 -1 -27 -38 3.78%
3.062% 15 Yr Fixed Jumbo 0 0 -8 -19 3.01%
12/04/12 Citi Financial 1 Day 5 Day 30 Day 100-Day 100-Low
3.43% 30 Year Fixed -1 12 -23 -35 3.32%
2.97% 15 Year Fixed -2 14 -18 -20 2.81%
12/04/12 Bank of America 1 Day Pt 5 Day Pt 30 Day Pt 100-Day 100-Low
3.50% 30-Year Fixed Rate -1 -1 -16 -14 3.37%
2.90% 15-Year Fixed-Rate -2 -2 -7 -15 2.81%
3.09% 5/1 ARM Rate 0 0 -5 -11 3.07%
Certain Areas
3.44% 30-Year Fixed Rate -5 -7 -21 -20 3.41%
2.91% 15-Year Fixed Rate -2 -4 -9 -21 2.83%
3.03% 7/1 ARM -1 -2 -3 -17 3.01%
3.07% 5/1 ARM 0 -2 1 -12 3.02%
* Average includes more banks than listed

Click here for Current Mortgage Rates Today (MORE BANKS)

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