(Best Syndication News) Mortgage interest rates were mixed today as lawmakers wrangled over a solution to the fiscal cliff (see the mortgage rate chart below). SunTrust lowered their loan rates while JPMorgan Chase, Bank of America, and PNC raised them.
Despite the threat of a Whitehouse veto, House Republicans will take up House of Representatives Speaker John Boehner’s “Plan-B” to avoid forced austerity in January. Today the Speaker said that over 99 percent of Americans will continue to see tax relief under his plan. It is up to the Democrats now, according to Boehner.
U.S. President Barack Obama said the Republicans are making headway, but they have not come far enough. The President is pressing for a long term extension of the debt limit (debt ceiling) while Republicans want the Democrats to agree to more entitlement cuts. The House is expected to vote on Plan-B Thursday.
The fiscal-cliff debate trumped other economic news. The uncertainty pushed the major U.S. indexes lower. The Dow Jones Industrial Average fell nearly 100 points. The broader S&P 500 dropped 0.76 percent and the tech-heavy NASDAQ fell 0.33 percent.
As stock prices plummeted, the U.S. Treasury Department said that government securities increased in value. This drove yields lower. The 10-year note yield fell two basis points (bps) to 1.82 percent (see the benchmark chart below).
The secondary lending market was mixed. Freddie Mac lowered their required net yield (RNY) rates while Fannie Mae raised them. The Federal Home Loan Mortgage Corp (OTC:FMCC) lowered their 30-year 60-day RNY rate two bps while the Federal National Mortgage Association (OTC:FNMA) raised their rate three bps.
The London InterBank Offered Rate (LIBOR) was mostly higher. The 6-month LIBOR hit 0.50975 percent and the 1-year LIBOR advanced to 0.843 percent.
The Mortgage Bankers Association (MBA) said that loan volume decreased 12.3 percent last week (seasonally adjusted). A reduction in refinancing was responsible for most of the drop. Their refinance index dropped 14 percent while the number of purchase mortgages fell five percent.
The Department of Commerce said there were 861,000 housing starts in November. That is down from a downwardly revised figure of 888,000 starts in October but above analyst expectations.
November building permits shot up to 899,000.
The average 30-year fixed rate mortgage (FRM) advanced one basis point to 3.480 percent (see the mortgage rate chart below). The difference between the 10-year note yield and the 30-year mortgage expanded three bps to 1.660 percent.
The average FHA mortgage rate decreased while the average VA loan rate rose.
PNC Financial Services (NYSE:PNC) raised their conventional 30-year mortgage one point to 3.74 percent.
Bank of America Corp (NYSE:BAC) raised their 30-year loan rate eight bps to 3.62 percent.
The average 15-year fixed mortgage rate fell slightly to 2.943 percent.
PNC raised their 15-year mortgage rate two bps and their 20-year mortgage rate just one point.
BAC lowered their 15-year rate two bps to 2.88 percent.
The average 5-year adjustable rate mortgage (ARM) advanced to 3.058 percent.
The average 30-year jumbo mortgage rate advanced six bps to 3.947 percent. SunTrust lowered their jumbo mortgage rate one basis point.
By: John Waters
|Wednesday||1 Day||5 Day||30 Day||100-Day||100-Day|
|12/19/12||Benchmark||Point Ch.||Point Ch.||Point Ch.||Point Ch.||Low|
|3.44||Bond Buyer's 20-yr bond index||0||17||-23||-17||3.27|
|2.83||FHLMC 30 yr 30 days RNY||-3||0||12||12||1.59|
|2.87||FHLMC 30 yr 60 days RNY||-2||2||12||11||1.68|
|2.908||FNMA 30 yr 30 days RNY||3||7||3||4||2.635|
|2.935||FNMA 30 yr 60 days RNY||3||7||2||2||2.68|
|0.2107||1 Month LIBOR Rate||0||0||0||-4||0.2075|
|0.31||3 Month LIBOR Rate||0||0||0||-13||0.308|
|0.50975||6 Month LIBOR Rate||0||0||-2||-22||0.5085|
|0.843||1 Year LIBOR Rate||0||0||-2||-21||0.8425|
|2.58||20-year Bond Yield Rate *||-1||9||16||37||2.2|
|1.82||10-year Note Yield Rate *||-2||8||14||31||1.51|
|0.15||1-Year Note Yield Rate *||-1||1||-3||-1||0.13|
|0.05||3-month Note Yield Rate *||-1||-1||-5||-6||0.04|
|1.011||11th District Cost of Funds||0||0||-3||-11||1.011|
|2.530||Difference 3-mo & 20 yr **||0||10||21||43||2.1|
|1.660||Difference 10yr Note 30yr Loan||3||-4||-8||-41||1.632492|
|* 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|
|12/19/12||National Average APR*||Point Ch.||Point Ch.||Point Ch.||Point Ch.||Low|
|3.480%||Average 30 yr fixed||1||4||6||-10||3.31%|
|3.935%||Average 30 yr FHA||0||1||2||-10||3.81%|
|3.705%||Average 30-yr VA||0||1||10||-10||3.60%|
|2.943%||Average 15 year FRM||0||1||1||-17||2.92%|
|3.058%||Average 5/1 ARM||0||1||0||-9||3.04%|
|3.947%||30 Yr Fixed Jumbo||6||12||10||-18||3.78%|
|3.068%||15 Yr Fixed Jumbo||1||5||4||-15||2.97%|
|12/19/12||PNC - National City Bank||1 Day||5 Day||30 Day||100-Day||100-Low|
|2.77%||10 Year Fixed||0||3||5||13||2.44%|
|2.87%||15 Year Fixed||2||4||5||5||2.48%|
|3.63%||20 Year Fixed||1||14||27||27||3.14%|
|3.74%||30 Year Fixed||1||14||16||15||3.33%|
|2.94%||10 Year Fixed||0||10||15||25||2.44%|
|3.05%||15 Year Fixed||2||13||14||13||2.49%|
|3.93%||20 Year Fixed||8||13||33||33||3.15%|
|4.00%||30 Year Fixed||0||3||3||16||3.35%|
|12/19/12||Bank of America||1 Day Pt||5 Day Pt||30 Day Pt||100-Day||100-Low|
|3.62%||30-Year Fixed Rate||8||11||11||-3||3.37%|
|3.01%||5/1 ARM Rate||0||-1||-10||-16||2.97%|
|3.42%||30-Year Fixed Rate||0||0||-7||-25||3.40%|
|2.88%||15-Year Fixed Rate||0||0||-5||-21||2.83%|
|* Average includes more banks than listed|
Important: The material on Best Syndication is for informational purposes only and is not meant to be advice. Authors may have or will receive monetary compensation from the company's product/s mentioned. You should always seek professional advice before making any legal, financial or medical decisions and this website cannot substitute or replace any trained professional consultation.
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