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(Best Syndication News) Mortgage interest rates advanced as capital markets migrated back into riskier assets (see the mortgage rate chart below). All of the major banks, including JPMorgan Chase, Bank of America, Citibank, and SunTrust, started moving their rates higher.
Positive news from Washington propelled the Dow to triple-digit gains two-straight days. Both sides in the fiscal-cliff debate are beginning to compromise. House Speaker John Boehner promised to bring a bill to the floor of Congress this week that would raise income tax rates on those earning $1 million or more.
The Boehner plan-B didn’t offer any new spending cuts. The Obama Administration upped their threshold from $250,000 to $400,000 while proposing some social spending cuts. Although the two sides have narrowed their differences, a deal has not been struck. When a compromise is reached, the Speaker must still convince some of his fellow Republicans to go along.
The new developments provided confidence for the two-day rally. The newfound exuberance pushed the Dow Jones Industrial Average (INDEXDJX:.DJI) up more than 115 points Tuesday. The NASDAQ gained 1.46 percent and the S&P 500 advanced 1.15 percent.
European debt concerns also eased. The Standard and Poor’s Rating Agency upgraded Greek debt to a B-minus. That is an 18-month high.
The National Association of Home Builders (NAHB) raised their December homebuilder index two points to 47. This was in line with analyst expectations.
Competition for U.S. government bonds and notes began to wane, according to data released by the U.S. Treasury. The 10-year note yield, a common benchmark for the 30-year fixed rate mortgage (FRM), advanced six basis points (bps) to 1.84 percent (see the benchmark chart below).
The 20-year Bond Buyer’s index climbed 17 points to 3.44 percent this week.
The secondary lenders were uniformly higher. The Federal Home Loan Mortgage Corp (OTC:FMCC) raised their 30-year 60-day required net yield (RNY) rate three bps to 2.89 percent. The Federal National Mortgage Association (OTC:FNMA) raised their RNY rate three points to 2.908 percent.
The London InterBank Offered Rate (LIBOR) was unchanged.
The average 30-year fixed mortgage rate advanced three bps to 3.472 percent (see the mortgage rate chart below). The difference between the 10-year note yield and the 30-year mortgage tightened three bps to 1.632 percent.
The average FHA loan rate gained one point to 3.963 percent. The average VA mortgage rate rose to 3.701 percent.
JPMorgan Chase & Co. (NYSE:JPM) has not changed their conventional 30-year rate in three days. The lender adjusted their rate up 10 bps to 3.58 percent.
SunTrust Banks, Inc. (NYSE:STI) raised their loan rate three bps to 3.54 percent.
The average 15-year fixed rate mortgage climbed one point to 2.944 percent.
JPM raised their 15-year rate two points and their 20-year loan rate one point.
STI raised their 15-year loan rate three bps to 2.93 percent.
The average 5-year adjustable rate mortgage (ARM) advanced one basis point to 3.054 percent.
By: John Waters
Business Reporter
Benchmark Chart:
| Tuesday | 1 Day | 5 Day | 30 Day | 100-Day | 100-Day | |
| 12/18/12 | Benchmark | Point Ch. | Point Ch. | Point Ch. | Point Ch. | Low |
| 3.250 | Prime Rate | 0 | 0 | 0 | 0 | 3.25 |
| 3.44 | Bond Buyer's 20-yr bond index | 17 | 17 | -23 | -31 | 3.27 |
| 2.86 | FHLMC 30 yr 30 days RNY | 3 | 9 | 6 | 14 | 1.59 |
| 2.89 | FHLMC 30 yr 60 days RNY | 3 | 8 | 5 | 12 | 1.68 |
| 2.879 | FNMA 30 yr 30 days RNY | 4 | 6 | -2 | -5 | 2.635 |
| 2.908 | FNMA 30 yr 60 days RNY | 3 | 7 | -3 | -8 | 2.68 |
| 0.2107 | 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 |
| 2.59 | 20-year Bond Yield Rate * | 6 | 11 | 7 | 37 | 2.2 |
| 1.84 | 10-year Note Yield Rate * | 6 | 12 | 6 | 31 | 1.51 |
| 0.16 | 1-Year Note Yield Rate * | 3 | 2 | -3 | -2 | 0.13 |
| 0.06 | 3-month Note Yield Rate * | 1 | -1 | -4 | -5 | 0.04 |
| 1.011 | 11th District Cost of Funds | 0 | 0 | -3 | -11 | 1.011 |
| 2.530 | Difference 3-mo & 20 yr ** | 5 | 12 | 11 | 42 | 2.1 |
| 1.632 | Difference 10yr Note 30yr Loan | -3 | -5 | -7 | -47 | 1.632492 |
| * 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 | |
| 12/18/12 | National Average APR* | Point Ch. | Point Ch. | Point Ch. | Point Ch. | Low |
| 3.472% | Average 30 yr fixed | 3 | 7 | -1 | -16 | 3.31% |
| 3.936% | Average 30 yr FHA | 1 | 1 | -1 | -14 | 3.81% |
| 3.701% | Average 30-yr VA | 0 | 1 | 0 | -16 | 3.60% |
| 2.944% | Average 15 year FRM | 1 | 1 | -5 | -19 | 2.92% |
| 3.054% | Average 5/1 ARM | 1 | 0 | -1 | -10 | 3.04% |
| 3.884% | 30 Yr Fixed Jumbo | 2 | 6 | 10 | -28 | 3.78% |
| 3.061% | 15 Yr Fixed Jumbo | 4 | 4 | -1 | -20 | 2.97% |
| 12/18/12 | Sun Trust Bank | 1 Day | 5 Day | 30 Day | 100-Day | 100-Low |
| 3.54% | 30 Yr Fixed Conventional | 3 | 6 | -11 | -45 | 3.43% |
| 2.93% | 15 Yr Fixed Conventional | 3 | 3 | -8 | -56 | 2.79% |
| 4.10% | 30 Yr Jumbo Fixed | 9 | 10 | 57 | -25 | 3.53% |
| 2.97% | Agency 5/1 ARM 30 Yr | 2 | 3 | 6 | -23 | 2.42% |
| 2.97% | Agency 7/1 ARM 30 Yr | 1 | 4 | 6 | -19 | 2.87% |
| 4.33% | 30 Yr FHA - Fixed | 2 | 4 | -6 | 6 | 4.05% |
| 12/18/12 | Chase | 1 Day Pt | 5 Day Pt | 30 Day Pt | 100-Day | 100-Low |
| 3.58% | 30-Year Fixed Rate | 10 | 12 | 1 | -15 | 3.32% |
| 3.38% | 20-Year Fixed Rate | 1 | 4 | -10 | -24 | 3.23% |
| 2.92% | 15-Year Fixed Rate | 2 | 5 | -7 | -20 | 2.79% |
| 3.08% | 7/1 ARM | 5 | 4 | 5 | -12 | 2.98% |
| 3.07% | 5/1 ARM | 1 | 1 | 1 | -13 | 2.98% |
| * Average includes more banks than listed | ||||||
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