Current Mortgage Rates Today – Bank of America and KeyBank raise loans rates again

Chart 15-Year Mortgage

(Best Syndication News) Mortgage interest rates advanced while the secondary lenders lowered their yield rates (see the mortgage rate charts below). JPMorgan Chase and PNC lowered some of their loan products, but Bank of America and KeyBank raised them.

Benchmarks

Confidence that a resolution to the fiscal cliff crisis helped push stock prices higher Monday. Reports from Washington over the weekend hinted that House of Representatives Speaker John Boehner was willing to allow taxes to increase on Americans earning $1 million or more.

President Barack Obama and Speaker Boehner met at the Whitehouse on Monday to discuss a compromise. Some Republicans are considering a plan that would increase capital gains taxes to 20 percent while retaining the middle-class Bush tax cuts. The GOP is still waiting for Democrats to propose more spending cuts.

Stocks responded favorably to the news. The Dow Jones Industrial Average (INDEXDJX:.DJI) jumped 100 points. The broader S&P 500 jumped 1.19 percent and the tech-heavy NASDAQ climbed 1.32 percent.

The National Association for Business Economics (NABE) expects the economy to improve in 2013, but at a sluggish pace. An improved housing and construction market will help, but the GDP is forecast to increase just 2.1 percent. Nayantara Hensel, Chairman of the NABE, said the economy should improve later in the year.

The New York Federal Reserve Bank said that their Empire Manufacturing Index fell to -8.1 in December from -5.2 in November. Analysts expected the index to move into positive territory this month.

Data provided by the U.S. Department of Treasury indicated that bond and note prices fell. Lower prices allowed yields to float higher. The 10-year note yield, a common benchmark for the 30-year fixed rate mortgage (FRM), advanced six basis points (bps) to 1.78 percent (see the benchmark chart below).

Secondary lenders didn’t follow the lead of the bond/note market. The Federal Home Loan Mortgage Corp (OTC:FMCC) dropped their 30-year 60-day required net yield (RNY) rate one basis point to 2.86 percent. The Federal National Mortgage Association (OTC:FNMA) lowered their rate to 2.873 percent.

The London InterBank Offered Rate (LIBOR) was mixed. The 1-month and 3-month LIBOR advanced while the 6-month and 1-year LIBOR slipped.

30-Year Fixed Mortgage Rates

The average 30-year mortgage rate advanced less than one point to 3.438 percent (see the mortgage rate chart below). The difference between the 10-year note yield and the 30-year mortgage tightened six bps to 1.658 percent.

The average FHA loan rate climbed to 3.929 percent and the average VA mortgage rate advanced to 3.701 percent.

KeyCorp (NYSE:KEY) raised their conventional rate to 3.56 percent. The lender also raised their FHA and VA financing.

Bank of America Corp (NYSE:BAC) raised their rate one point to 3.51 percent.

15-Year FRM and 5/1 ARM

The average 15-year fixed mortgage rate climbed to 2.939 percent.

KEY raised their rate less than one point to 2.96 percent.

BAC raised their 15-year loan rate two bps to 2.87 percent.

The average 5-year adjustable rate mortgage (ARM) advanced to 3.046 percent.

By: John Waters
Business Reporter

Benchmark Chart:

Monday 1 Day 5 Day 30 Day 100-Day 100-Day
12/17/12 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 0 -41 -48 3.27
2.83 FHLMC 30 yr 30 days RNY 0 9 9 6 1.59
2.86 FHLMC 30 yr 60 days RNY -1 8 8 4 1.68
2.844 FNMA 30 yr 30 days RNY 0 3 -4 -1 2.635
2.873 FNMA 30 yr 60 days RNY 0 4 -6 -2 2.68
0.21 1 Month LIBOR Rate 0 0 0 -4 0.2075
0.309 3 Month LIBOR Rate 0 0 0 -14 0.308
0.5085 6 Month LIBOR Rate 0 -1 -3 -22 0.5085
0.8425 1 Year LIBOR Rate 0 -1 -3 -22 0.8425
2 Call Money 0 0 0 0 2
2.53 20-year Bond Yield Rate * 7 12 6 26 2.2
1.78 10-year Note Yield Rate * 6 12 6 20 1.51
0.13 1-Year Note Yield Rate * 0 -3 -6 -4 0.13
0.05 3-month Note Yield Rate * 1 -3 -6 -6 0.04
1.011 11th District Cost of Funds 0 0 -3 -11 1.011
2.480 Difference 3-mo & 20 yr ** 6 15 12 32 2.1
1.658 Difference 10yr Note 30yr Loan -6 -7 -7 -39 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
12/17/12 National Average APR* Point Ch. Point Ch. Point Ch. Point Ch. Low
3.438% Average 30 yr fixed 0 5 -1 -19 3.31%
3.929% Average 30 yr FHA 0 1 -1 -16 3.81%
3.701% Average 30-yr VA 0 1 1 -19 3.60%
2.939% Average 15 year FRM 0 0 -3 -19 2.92%
3.046% Average 5/1 ARM 0 -2 -1 -11 3.04%
3.865% 30 Yr Fixed Jumbo 3 6 -1 -35 3.78%
3.026% 15 Yr Fixed Jumbo 0 0 -5 -23 2.97%
12/17/12 Key Bank 1 Day Pt 5 Day Pt 30 Day Pt 100-Day 100-Low
3.56% 30-yr Fixed Rate 0 3 -2 -26 3.45%
2.96% 15-yr Fixed Rate 0 -2 -1 -14 2.89%
Adjustable Rate Mortgage
3.18% 10/1 ARM 0 0 6 -2 3.10%
3.03% 7/1 ARM 0 -1 3 0 2.97%
3.05% 5/1 ARM 0 2 3 -2 3.00%
3.58% 3/1 ARM 0 1 10 10 3.43%
FHA Loans
3.48% 30-yr FHA 0 2 3 -19 3.34%
3.55% 20-yr FHA 0 2 6 -22 3.39%
3.44% 15-yr FHA 2 3 5 -1 3.32%
VA Loans
3.49% 30-yr VA 1 3 4 -18 3.34%
3.50% 25-yr VA 1 3 5 -18 3.35%
3.55% 20-yr VA 0 2 4 -22 3.39%
3.43% 15-yr VA -21 -23 -20 0 3.35%
12/17/12 Bank of America 1 Day Pt 5 Day Pt 30 Day Pt 100-Day 100-Low
3.51% 30-Year Fixed Rate 1 8 -12 -15 3.37%
2.87% 15-Year Fixed-Rate 2 0 -11 -15 2.81%
2.97% 5/1 ARM Rate -3 -14 -14 -20 2.97%
Certain Areas
3.42% 30-Year Fixed Rate 0 0 -13 -26 3.40%
2.88% 15-Year Fixed Rate 0 0 -10 -20 2.83%
3.01% 7/1 ARM 0 0 -5 -17 3.01%
3.06% 5/1 ARM 0 0 -3 -1 3.02%
* Average includes more banks than listed

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