Current Mortgage Rates Today – Bank of America raises rates while U.S. Bank lowers them

FHA Loan Rates

(Best Syndication News) Mortgage interest rates were generally lower today while some banks and secondary lenders bucked the trend (see the mortgage rate charts below). JPMorgan Chase, SunTrust, and U.S. Bank lowered their rates while Bank of America raised their rate.

Benchmarks

Stocks closed higher after spending most of the day in positive territory Monday. Investors anticipate continued monetary action by the Federal Reserve next quarter despite the outcome of the fiscal cliff negotiations. House Speaker John Boehner and President Barack Obama met at the Whitehouse on Sunday to discuss the looming crisis.

The recent upswing in stocks brought back most of the value lost right after the election. Traders are still worried about the fiscal cliff, but low government yield rates continue to discourage U.S. government securities investments.

The S&P 500 is 12 percent higher this year and the holiday season has been mostly good for stocks since 1950. This year is no exception, however if an agreement is not reached on austerity – and many analysts believe there will not be an agreement until after January 1st – then investors may begin to sell again.

Not all of the sectors were higher. The services sector declined 0.03 percent, although McDonald's Corporation (NYSE:MCD) was a bright spot. The fast-food restaurant chain has been varying its offerings, and that could be their secret to success. In October, same-store-sales declined for the first time in a decade, but they sprouted 2.4 percent in November. The company credits new beverage offerings and the new Cheddar Bacon Onion Burger. The dollar menu has also been a beacon for cash-strapped Americans.

The Dow Jones Industrial Average (INDEXDJX:.DJI) advanced just 14.75 points (+0.11%). The S&P 500 and the NASDAQ advanced 0.03 percent and 0.30 percent respectively.

The U.S. Department of Treasury data showed increased competition for bonds and notes. This competition drove prices higher and yields lower. The 10-year note yield, a common benchmark for the 30-year fixed rate mortgage (FRM), dropped one basis point to 1.63 percent (see the benchmark chart below).

Secondary lenders were mixed again. The Federal Home Loan Mortgage Corp (OTC:FMCC) lowered their 30-year 60-day required net yield (RNY) rate five basis points (bps) to 2.75 percent. Meanwhile, the Federal National Mortgage Association (OTC:FNMA) raised their RNY rate three bps to 2.848 percent.

The LIBOR was mostly flat. The 1-year LIBOR was unchanged while the 6-month LIBOR fell to 0.518 percent.

On Wednesday the Federal Reserve will release their rate decision. The central bank has already signaled that they would hold their target rate near zero percent, but investors will be watching the statement for more quantitative easing.

30-Year Fixed Mortgage Rates

The average 30-year fixed rate mortgage (FRM) fell two bps to 3.383 percent (see the mortgage rate chart below). The difference between the 10-year note yield and the 30-year mortgage tightened one basis point to 1.753 percent.

The average 30-year FHA loan rate fell to 3.918 percent and the average VA loan rate fell to 3.689 percent.

U.S. Bancorp (NYSE:USB) lowered their conventional loan rate eight bps to 3.47 percent. The lender held their FHA and VA loan rates unchanged.

Bank of America Corp (NYSE:BAC) raised their conventional 30-year mortgage rate seven bps to 3.50 percent.

15-Year FRM and 5/1 ARM

The average 15-year fixed rate mortgage fell slightly to 2.947 percent.

USB didn’t adjust their 15-year rate; however the bank did lower their 20-year rate four bps to 3.55 percent.

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

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

By: John Waters
Business Reporter

Benchmark Chart:

Monday 1 Day 5 Day 30 Day 100-Day 100-Day
12/10/12 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 0 -39 -54 3.29
2.72 FHLMC 30 yr 30 days RNY -5 6 -8 1 1.59
2.75 FHLMC 30 yr 60 days RNY -5 6 -8 0 1.68
2.823 FNMA 30 yr 30 days RNY 4 3 1 -6 2.635
2.848 FNMA 30 yr 60 days RNY 3 2 -1 -9 2.68
0.212 1 Month LIBOR Rate 0 0 0 -3 0.2075
0.3105 3 Month LIBOR Rate 0 0 0 -14 0.3095
0.518 6 Month LIBOR Rate 0 -1 -2 -21 0.518
0.853 1 Year LIBOR Rate 0 -1 -2 -21 0.853
2 Call Money 0 0 0 0 2
2.38 20-year Bond Yield Rate * -1 2 -10 21 2.11
1.63 10-year Note Yield Rate * -1 1 -11 14 1.43
0.18 1-Year Note Yield Rate * 0 0 0 1 0.16
0.09 3-month Note Yield Rate * 0 -1 -5 0 0.06
1.011 11th District Cost of Funds 0 0 -6 -11 1.011
2.290 Difference 3-mo & 20 yr ** -1 3 -5 21 2.01
1.753 Difference 10yr Note 30yr Loan -1 -1 3 -33 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
12/10/12 National Average APR* Point Ch. Point Ch. Point Ch. Point Ch. Low
3.383% Average 30 yr fixed -2 0 -8 -19 3.31%
3.918% Average 30 yr FHA 0 0 -4 -6 3.81%
3.689% Average 30-yr VA 0 0 -2 -7 3.60%
2.947% Average 15 year FRM 0 0 -2 -20 2.92%
3.061% Average 5/1 ARM 0 0 -2 -15 3.06%
3.804% 30 Yr Fixed Jumbo 0 2 -20 -33 3.78%
3.026% 15 Yr Fixed Jumbo 0 -4 -10 -18 2.97%
12/10/12 U.S. Bank 1 Day 5 Day 30 Day 100-Day 100-Low
3.47% 30-Year Fixed -8 2 -9 -20 3.34%
3.55% 20-Year Fixed -4 1 4 1 3.39%
2.86% 15-Year Fixed 0 4 4 -23 2.73%
2.97% 10-Year Fixed -3 2 5 -15 2.84%
3.79% FHA 30-Year 0 0 0 0 3.71%
3.43% FHA 15-Year 0 0 15 0 3.29%
3.83% VA 30-Year 0 0 0 0 3.70%
3.32% VA 15-Year 0 0 0 -25 3.32%
3.57% 3-Year ARM 0 3 -3 -16 3.54%
3.37% 5-Year ARM 0 4 0 -12 3.32%
3.47% Jumbo 30-Year 0 0 -25 -25 3.47%
2.77% Jumbo 15-Year 0 0 -13 -25 2.64%
12/10/12 Bank of America 1 Day Pt 5 Day Pt 30 Day Pt 100-Day 100-Low
3.50% 30-Year Fixed Rate 7 0 -3 -17 3.37%
2.90% 15-Year Fixed-Rate 4 0 0 -22 2.81%
3.10% 5/1 ARM Rate 1 1 -4 -7 3.07%
Certain Areas
3.42% 30-Year Fixed Rate 0 -2 -11 -24 3.40%
2.88% 15-Year Fixed Rate 0 -3 -6 -27 2.83%
3.01% 7/1 ARM 0 -3 -5 -23 3.01%
3.06% 5/1 ARM 0 -1 2 -9 3.02%
0 0 0 0 0.00%
* Average includes more banks than listed

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