Current Mortgage Rates Today – Lenders Including Wells Fargo and JPMorgan Chase Raise Loans

Mortgage Rates Graph

(Best Syndication News) Mortgage interest rates spiked today as positive economic news pressed equities higher (see the mortgage rate charts below). A rise in the secondary lending market helped banks, including Bank of America, Wells Fargo, JPMorgan Chase, and SunTrust, adjust their loan products higher.

Benchmarks

The unemployment rate in the United States hit a four-year low last month as employers added more workers. Economists were surprised to see that employers hired 146,000 workers in November pushing the unemployment rate down to 7.7 percent.

Analysts expected a decrease in hiring due to Superstorm / Hurricane Sandy, which struck the northeast coast of the United States in late October. Homeowners and businesses are still digging-out after a storm surge swept through parts of New York and New Jersey.

Washington is still working on a fiscal-cliff resolution, but meanwhile the uncertainty is weighing on equity markets. The Federal Reserve is expected to extend their bond-buying program at their meeting this week, but the central bank has made it clear they can’t compensate for a downturn in the economy if Washington fails to act by the first of the year.

Mark Zandi, the Chief Economist for Moody's Corporation (NYSE:MCO) Analytics, says the economy can’t sustain harsh tax increases and spending cuts. If a solution isn’t hashed-out by the end of February the U.S. could enter another severe recession. Although the jobs report was encouraging, the unemployment rate is still high, according to Zandi.

The Dow Jones Industrial Average (INDEXDJX:.DJI) index advanced 81 points. The S&P 500 was up 0.29 percent; however Apple Inc. (NASDAQ:AAPL) weighed on the NASDAQ, contributing to the slide of 0.38 percent. AAPL dropped about nine percent on the week, mostly because of profit taking and the company’s lack of any special dividends.

If Congress and the Whitehouse fail to resolve the fiscal cliff problem, taxes on dividends could skyrocket to 47 percent. AAPL is sitting on a large pool of cash and has not announced any dividend before the end of the year.

Data provided by the U.S. Department of Treasury indicates weaker demand for government bonds and notes. The 10-year note yield, a common benchmark for the 30-year fixed rate mortgage (FRM), advanced five basis points (bps) to 1.64 percent (see the benchmark chart below).

The secondary lenders, including Fannie Mae and Freddie Mac, followed the trend in the capital markets. The Federal National Mortgage Association (OTC:FNMA) raised their 30-year 60-day required net yield (RNY) rate one basis point to 2.816 percent. The Federal Home Loan Mortgage Corp (OTC:FMCC) raised their RNY rate eight bps to 2.8 percent.

The London InterBank Offered Rate (LIBOR) declined again. The 6-month LIBOR fell one point to 0.519 percent. The 1-year LIBOR fell to 0.853 percent.

30-Year Fixed Mortgage Rates

The average 30-year fixed rate mortgage rate advanced five bps to 3.399 percent (see the mortgage rate chart below). The difference between the 10-year note yield and the 30-year mortgage tightened to 1.759 percent.

The average FHA loan rate advanced five bps to 3.920 percent and the average VA mortgage rate climbed four points to 3.692 percent.

Wells Fargo & Company (NYSE:WFC) raised their conventional rate 13 bps to 3.55 percent. The lender also raised their FHA loan rate 14 bps.

JPMorgan Chase & Co. (NYSE:JPM) increased their 30-year rate 12 bps to 3.44 percent.

15-Year FRM and 5/1 ARM

The average 15-year fixed mortgage rate advanced two bps to 2.951 percent.

WFC lifted their 15-year rate two bps to 2.951 percent. The JPM 15-year rate advanced four bps to 2.94 percent.

The average 5-year adjustable rate mortgage (ARM) fell less than one point to 3.066 percent.

By: John Waters
Business Reporter

Benchmark Chart:

Friday 1 Day 5 Day 30 Day 100-Day 100-Day
12/07/12 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 0 -8 -39 -54 3.29
2.77 FHLMC 30 yr 30 days RNY 9 10 -2 5 1.59
2.8 FHLMC 30 yr 60 days RNY 8 9 -3 4 1.68
2.786 FNMA 30 yr 30 days RNY 1 -1 -4 -13 2.635
2.816 FNMA 30 yr 60 days RNY 1 -1 -5 -15 2.68
0.212 1 Month LIBOR Rate 0 0 0 -3 0.2075
0.3095 3 Month LIBOR Rate 0 0 0 -14 0.3095
0.519 6 Month LIBOR Rate -1 -1 -3 -21 0.519
0.853 1 Year LIBOR Rate 0 -1 -3 -21 0.853
2 Call Money 0 0 0 0 2
2.39 20-year Bond Yield Rate * 6 2 -14 15 2.11
1.64 10-year Note Yield Rate * 5 1 -14 10 1.43
0.18 1-Year Note Yield Rate * 0 0 -1 1 0.16
0.09 3-month Note Yield Rate * -1 -1 -3 0 0.06
1.011 11th District Cost of Funds 0 0 -6 -11 1.011
2.300 Difference 3-mo & 20 yr ** 7 3 -11 15 2.01
1.759 Difference 10yr Note 30yr Loan 0 -2 3 -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
12/07/12 National Average APR* Point Ch. Point Ch. Point Ch. Point Ch. Low
3.399% Average 30 yr fixed 5 -1 -11 -18 3.31%
3.920% Average 30 yr FHA 5 0 -6 -8 3.81%
3.692% Average 30-yr VA 4 0 -2 -8 3.60%
2.951% Average 15 year FRM 2 -1 -5 -20 2.92%
3.066% Average 5/1 ARM 0 -1 -2 -11 3.06%
3.805% 30 Yr Fixed Jumbo 2 -4 -19 -36 3.78%
3.022% 15 Yr Fixed Jumbo 5 -4 -10 -22 2.97%
12/07/12 Wells Fargo 1 Day 5 Day 30 Day 100-Day 100-Day
3.55% 30-Year Fixed 13 0 -25 -38 3.42%
4.27% 30-Year Fixed FHA 14 0 0 -14 4.14%
2.93% 15-Year Fixed 13 0 -13 -25 2.80%
2.95% 5-Year ARM 0 -4 -9 -21 2.95%
2.90% 5-Year ARM FHA 0 0 -5 -14 2.90%
Certain areas
3.75% 30-Year Fixed 13 0 -13 -25 3.63%
4.22% 30-Year Fixed FHA 0 0 -41 -55 4.22%
2.99% 5-Year ARM 0 -4 -9 -21 2.99%
Jumbo Loans
3.75% 30-Year Fixed 13 0 -25 -50 3.63%
2.95% 5-Year ARM 0 -9 -22 -38 2.95%
12/07/12 Chase 1 Day Pt 5 Day Pt 30 Day Pt 100-Day 100-Low
3.44% 30-Year Fixed Rate 12 0 -25 -27 3.32%
3.27% 20-Year Fixed Rate 4 -7 -35 -28 3.23%
2.94% 15-Year Fixed Rate 4 0 -14 -14 2.79%
3.08% 7/1 ARM 1 0 0 -15 2.98%
3.08% 5/1 ARM 1 -2 1 -16 2.98%
* Average includes more banks than listed

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