Current Mortgage Rates Today – Loans higher at SunTrust and KeyBank

Graph of VA Mortgages

(Best Syndication News) Mortgage rates trended higher today as money continued to flow into equities (see the mortgage rate charts below). Bank of America and U.S. Bank lowered their rates, however KeyBank, SunTrust, and JPMorgan Chase raised them.

Benchmarks

Investors are losing confidence that an agreement will be reached to avoid the fiscal cliff. Democrats are calling for an increase in taxes and Republicans call for specific spending cuts. If the fiscal cliff is not averted there will be automatic tax increases and major spending cuts.

The Federal Open Market Committee (FOMC) is expected to discuss new stimulus or a continuation of their operation Twist this week. Analysts anticipate the Fed to announce a long-term bond buying program for early next year even if Washington lawmakers are able to hash-out an austerity deal.

The central bank has been purchasing $45 billion long-term bonds while selling the same value of shorter-term Treasuries. Investors are hoping to see a new monetary stimulus plan when the Fed provides a FOMC statement on Wednesday. Increased Fed spending could accelerate inflation.

The U.S. Department of Commerce said the trade deficit increased to $42.2 billion in October. Imports were down 2.1 percent; however exports were also down 3.6 percent. The government also said wholesale inventories increased 0.6 percent in October.

The Dow Jones Industrial Average advanced 78 points Tuesday. The S&P 500 (INDEXSP:.INX) advanced 0.65 percent and the tech-heavy NASDAQ advanced 1.18 percent.

Technology stocks led the way. One of the sector’s biggest gainer, WebMD Health Corp. (NASDAQ:WBMD), announced job cuts. Management says the move is part of a plan to streamline their business. Investors loved the news.

As money flowed into the riskier equities, competition for government securities began to wane. The 10-yeara note yield, a common benchmark for the 30-year fixed rate mortgage (FRM), advanced three basis points (bps) to 1.66 percent (see the benchmark chart below).

The 20-year Bond Buyer’s bond index fell two bps to 3.27 percent.

Secondary lenders were mixed. Fannie Mae lowered their required net yield (RNY) rates while Freddie Mac raised them. The Federal National Mortgage Association (OTC:FNMA) lowered their 30-year 60-day RNY rate one basis point to 2.838 percent. The Federal Home Loan Mortgage Corp (OTC:FMCC) raised their RNY rate three bps to 2.78 percent.

The London InterBank Offered Rate (LIBOR) continued to move lower. The 1-year LIBOR hit 0.852 percent and the 6-month LIBOR hit 0.517 percent.

30-Year Fixed Mortgage Rates

The average 30-year fixed rate mortgage (FRM) advanced only slightly to 3.386 percent (see the mortgage rate chart below). The difference between the 10-year note yield and the 30-year mortgage tightened three points to 1.726 percent.

The average FHA mortgage rate climbed to 3.921 percent and the average VA loan rate hit 3.693 percent.

SunTrust Banks, Inc. (NYSE:STI) raised their conventional 30-year rate one basis point to 3.44 percent.

KeyCorp (NYSE:KEY) increased their 30-year rate two bps to 3.54 percent. The lender also raised their FHA and VA loan products.

15-Year FRM and 5/1 ARM

The average 15-year fixed mortgage rate fell one basis point to 2.941 percent.

STI raised their 15-year rate one point while KEY raised their rate three bps.

The average 5-year adjustable rate mortgage (ARM) advanced slightly to 3.062 percent.

Jumbo Loans

Jumbo mortgage rates were mostly higher. The average 30-year jumbo increased to 3.806 percent. STI raised their jumbo rate mortgage one point to 4.01 percent.

By: John Waters
Business Reporter

Benchmark Chart:

Tuesday 1 Day 5 Day 30 Day 100-Day 100-Day
12/11/12 Benchmark Point Ch. Point Ch. Point Ch. Point Ch. Low
3.250 Prime Rate 0 0 0 0 3.25
3.27 Bond Buyer's 20-yr bond index -2 -2 -41 -56 3.27
2.74 FHLMC 30 yr 30 days RNY 2 8 -6 7 1.59
2.78 FHLMC 30 yr 60 days RNY 3 9 -5 6 1.68
2.813 FNMA 30 yr 30 days RNY -1 3 0 -4 2.635
2.838 FNMA 30 yr 60 days RNY -1 3 -2 -5 2.68
0.211 1 Month LIBOR Rate 0 0 0 -4 0.2075
0.3095 3 Month LIBOR Rate 0 0 0 -14 0.3095
0.517 6 Month LIBOR Rate 0 -1 -2 -21 0.517
0.852 1 Year LIBOR Rate 0 -1 -3 -21 0.852
2 Call Money 0 0 0 0 2
2.41 20-year Bond Yield Rate * 3 6 -7 26 2.11
1.66 10-year Note Yield Rate * 3 6 -8 19 1.43
0.16 1-Year Note Yield Rate * -2 -2 -2 -1 0.16
0.08 3-month Note Yield Rate * -1 -2 -6 -2 0.06
1.011 11th District Cost of Funds 0 0 -6 -11 1.011
2.330 Difference 3-mo & 20 yr ** 4 8 -1 28 2.01
1.726 Difference 10yr Note 30yr Loan -3 -3 -1 -33 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
12/11/12 National Average APR* Point Ch. Point Ch. Point Ch. Point Ch. Low
3.386% Average 30 yr fixed 0 3 -9 -14 3.31%
3.921% Average 30 yr FHA 0 5 -3 -4 3.81%
3.693% Average 30-yr VA 0 4 -2 -1 3.60%
2.941% Average 15 year FRM -1 1 -4 -19 2.92%
3.062% Average 5/1 ARM 0 0 -3 -10 3.06%
3.806% 30 Yr Fixed Jumbo 0 2 -19 -30 3.78%
3.026% 15 Yr Fixed Jumbo 0 0 -10 -18 2.97%
12/11/12 Sun Trust Bank 1 Day 5 Day 30 Day 100-Day 100-Low
3.44% 30 Yr Fixed Conventional 1 1 -24 -43 3.43%
2.89% 15 Yr Fixed Conventional 1 -2 -11 -54 2.79%
4.01% 30 Yr Jumbo Fixed 1 1 -21 -23 3.53%
2.97% Agency 5/1 ARM 30 Yr 4 3 4 -33 2.42%
2.95% Agency 7/1 ARM 30 Yr 4 4 4 -30 2.87%
4.29% 30 Yr FHA - Fixed 1 2 -11 10 4.05%
12/11/12 Key Bank 1 Day Pt 5 Day Pt 30 Day Pt 100-Day 100-Low
3.54% 30-yr Fixed Rate 2 8 -14 -6 3.45%
2.97% 15-yr Fixed Rate 3 5 -10 -1 2.89%
Adjustable Rate Mortgage
3.18% 10/1 ARM 0 6 1 -1 3.10%
3.04% 7/1 ARM 1 3 -2 0 2.97%
3.03% 5/1 ARM 0 3 -3 -8 3.00%
3.58% 3/1 ARM 0 2 13 1 3.43%
FHA Loans
3.46% 30-yr FHA 1 11 -5 -4 3.34%
3.53% 20-yr FHA 1 3 -5 -6 3.39%
3.41% 15-yr FHA 2 3 -3 0 3.32%
VA Loans
3.46% 30-yr VA 1 11 -5 -4 3.34%
3.48% 25-yr VA 1 11 -5 -4 3.35%
3.53% 20-yr VA 2 3 -11 -6 3.39%
3.66% 15-yr VA 2 3 -3 25 3.35%
* Average includes more banks than listed

Click here for Current Mortgage Rates Today (MORE BANKS)

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