Current Mortgage Rates Today – Conventional loan rates Rise while VA and ARM products drop

Graph of 15-Year Mortgage

Best Syndication News

(Best Syndication News) Mortgage rates were mostly higher today as lenders reacted to a rising secondary market (see the mortgage rate charts below). JPMorgan Chase, Wells Fargo, and Citibank raised their loan rates while U.S. Bank and BofA lowered them.

Benchmarks

The stock indexes were mixed despite assurances from the Federal Reserve that they would continue to buy U.S. securities to keep interest rates low. Markets usually react positively to continued stimulus and easing, however all three major indexes jumped after the announcement but slowly dropped by the closing bell.

The Fed policy should weaken the dollar and create intraday volatility. Gold prices could climb because of the actions. With their dual mandate to control inflation and labor market, the Fed is willing to risk higher prices to lower unemployment.

Energy prices are determined by demand and inflation. If the economy slows next year, oil and natural gas prices could fall despite an increase in the inflation rate. Gold was higher today, but only slightly.

Fiscal cliff worries continued to weigh on equities. Stock prices reacted positively when Federal Reserve Chairman Ben Bernanke announced continued stimulus. But markets began to crumble as the Fed chair discussed the fiscal cliff with reporters.

The Dow Jones Industrial Average (INDEXDJX:.DJI) dropped three points by the closing bell. The broader S&P 500 was higher, but nearly unchanged. The tech-heavy NASDAQ fell 0.28 percent.

The financial sector was a bright spot during the trading session, gaining nearly 0.5 percent. American International Group, Inc. (NYSE:AIG) was the most actively traded financial stock as the share price remained above the $32.50 mark set by the U.S. government in their final sale of the insurance giant. The transaction of 234 million shares should be completed by Friday’s close.

Data provided by the U.S. Treasury Department showed fading competition for U.S. securities. Prices dropped pushing yields higher. The 10-year note yield advanced six basis points (bps) to 1.72 percent (see the benchmark chart below).

Secondary lenders raised their required net yield (RNY) rates. The Federal Home Loan Mortgage Corp (OTC:FMCC) raised their 30-year 30-day RNY rate three bps to 2.77 percent. The Federal National Mortgage Association (OTC:FNMA) raised their RNY rate to 2.816 percent.

The London InterBank Offered Rate (LIBOR) was mostly lower. Over the last 30-business the 6-month and 1-year LIBOR fell three bps.

30-Year Fixed Mortgage Rates

The average 30-year fixed rate mortgage (FRM) advanced two bps to 3.403 percent (see the mortgage rate chart below). The difference between the 10-year note yield and the 30-year mortgage rate tightened four bps to 1.683 percent.

The average FHA mortgage rate advanced while the average VA loan rate fell.

JPMorgan Chase & Co. (NYSE:JPM) raised their conventional rate two bps to 3.46 percent.

Wells Fargo & Company (NYSE:WFC) raised their 30-year conventional rate 13 bps to 3.67 percent.

15-Year FRM and 5/1 ARM

The average 15-year fixed mortgage rate fell less than one point to 2.939 percent.

JPM lowered their 15-year fixed rate mortgage; however the lender did raise their 20-year rate seven bps.

Over the last week WFC raised their 15-year mortgage 13 bps.

The average 5-year adjustable rate mortgage (ARM) fell one basis point to 3.056 percent.

By: John Waters
Business Reporter

Benchmark Chart:

Wednesday 1 Day 5 Day 30 Day 100-Day 100-Day
12/12/12 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 0 -2 -41 -48 3.27
2.77 FHLMC 30 yr 30 days RNY 3 9 1 10 1.59
2.81 FHLMC 30 yr 60 days RNY 3 9 1 9 1.68
2.816 FNMA 30 yr 30 days RNY 0 4 0 -1 2.635
2.842 FNMA 30 yr 60 days RNY 0 4 -2 -1 2.68
0.209 1 Month LIBOR Rate 0 0 0 -4 0.2075
0.3095 3 Month LIBOR Rate 0 0 0 -14 0.3095
0.5145 6 Month LIBOR Rate 0 -1 -3 -21 0.5145
0.8495 1 Year LIBOR Rate 0 -1 -3 -21 0.8495
2 Call Money 0 0 0 0 2
2.48 20-year Bond Yield Rate * 7 15 2 37 2.11
1.72 10-year Note Yield Rate * 6 13 0 28 1.43
0.14 1-Year Note Yield Rate * -2 -4 -4 -4 0.14
0.07 3-month Note Yield Rate * -1 -3 -4 -3 0.06
1.011 11th District Cost of Funds 0 0 -3 -11 1.011
2.410 Difference 3-mo & 20 yr ** 8 18 6 40 2.01
1.683 Difference 10yr Note 30yr Loan -4 -8 -8 -41 1.641858
* Treasury Yields - DAILY
** Pos change - economy to improve soon (probit model)

Mortgage Rate Chart:

Best Syndication News Mortgage Survey
Wednesday 1 Day 5 Day 30 Day 100-Day 100-Day
12/12/12 National Average APR* Point Ch. Point Ch. Point Ch. Point Ch. Low
3.403% Average 30 yr fixed 2 5 -8 -13 3.31%
3.921% Average 30 yr FHA 0 5 -3 -5 3.81%
3.690% Average 30-yr VA 0 3 -1 -7 3.60%
2.939% Average 15 year FRM 0 1 -4 -21 2.92%
3.056% Average 5/1 ARM -1 -1 -2 -6 3.06%
3.828% 30 Yr Fixed Jumbo 2 5 -14 -28 3.78%
3.026% 15 Yr Fixed Jumbo 0 5 -10 -17 2.97%
12/12/12 Wells Fargo 1 Day 5 Day 30 Day 100-Day 100-Day
3.67% 30-Year Fixed 13 25 -13 -13 3.42%
4.27% 30-Year Fixed FHA 0 14 0 -14 4.14%
2.93% 15-Year Fixed 0 13 -13 -25 2.80%
2.95% 5-Year ARM 0 0 -9 -13 2.95%
2.90% 5-Year ARM FHA 0 0 -5 0 2.90%
Certain areas
3.75% 30-Year Fixed 0 13 -13 -25 3.63%
4.22% 30-Year Fixed FHA 0 0 -41 -55 4.22%
2.99% 5-Year ARM 0 0 -9 -13 2.99%
Jumbo Loans
3.75% 30-Year Fixed 0 13 -25 -50 3.63%
2.95% 5-Year ARM 0 0 -22 -30 2.95%
12/12/12 Chase 1 Day Pt 5 Day Pt 30 Day Pt 100-Day 100-Low
3.46% 30-Year Fixed Rate 2 14 -12 -16 3.32%
3.34% 20-Year Fixed Rate 7 11 -15 -20 3.23%
2.86% 15-Year Fixed Rate -5 -4 -16 -22 2.79%
3.05% 7/1 ARM 0 -3 3 -11 2.98%
3.06% 5/1 ARM 0 -1 7 -9 2.98%
* Average includes more banks than listed

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