Current Mortgage Rates Today – Loans slide at SunTrust and JPMorgan Chase

Conventional Rate Graph

(Best Syndication News) Mortgage interest rates slipped today as lenders reacted to descending benchmarks (see the mortgage rate charts below). Bank of America, KeyBank, SunTrust, and JPMorgan Chase lowered their conventional loan rates.

Benchmarks

Lack of progress on the fiscal cliff issue produced a sell-off on Wall Street Friday. House of Representatives Speaker John Boehner was unable to rally support for his Plan-B which would have raised taxes on those making over $1 million. His fellow Republicans balked at the idea of raising taxes before they went home for the Christmas break.

Meanwhile, President Barack Obama traveled to Hawaii to spend time with his family. Before leaving Washington, the President said there were still 10 days left to work out a solution.

The U.S. Department of Commerce said that personal income increased 0.6 percent in November. This was better than the upwardly revised figure of 0.1 percent in October and the 0.3 percent analysts had expected. Spending was also up 0.4 percent.

The University of Michigan lowered their sentiment index from 74.5 in November to just 72.9 in December. Economists were hoping for an increase.

The Dow Jones Industrial Average (INDEXDJX:.DJI) fell 120 points in one day Friday as worried investors began to sell equities. The S&P 500 fell 0.94 percent and the NASDAQ dropped 0.96 percent.

Bond and note prices shot-up as capital markets looked for safe-havens. Yields began to drop as competition increased. The 10-year note yield, a common benchmark for the 30-year fixed rate mortgage (FRM), fell four basis points (bps) to 1.77 percent (see the benchmark chart below).

The secondary lending market was mixed. The Federal Home Loan Mortgage Corp (OTC:FMCC) lowered their 30-year 60-day required net yield (RNY) rate two bps to 2.85 percent. The Federal National Mortgage Association (OTC:FNMA) raised their rate less than one point to 2.907 percent.

The London InterBank Offered Rate (LIBOR) was mostly unchanged. The 1-month LIBOR was lower while the 6-month LIBOR and 1-year LIBOR were unchanged. The LIBOR is a common index for adjustable rate mortgages (ARMS).

The U.S. stock markets and banks are open Christmas Eve Monday, December 24th 2012. The Shanghai Composite index (China) and Hang Seng index (Hong Kong) are already higher in early trading, however the Nikkei 225 (Japan) is lower.

30-Year Fixed Mortgage Rates

All of the major banks lowered their mortgage loan rates. The average 30-year fixed mortgage rate fell four bps to 3.423 percent (see the mortgage rate chart below). The difference between the 10-year note yield and the 30-year FRM expanded to 1.653 percent.

The average FHA loan rate fell one point to 3.924 percent and the average VA mortgage rate fell one point to 3.695 percent.

SunTrust Banks, Inc. (NYSE:STI) lowered their conventional 30-year purchase rate two bps to 3.50 percent.

JPMorgan Chase & Co. (NYSE:JPM) lowered their rate 10 bps to 3.48 percent.

15-Year FRM and 5/1 ARM

The average 15-year fixed mortgage rate fell one point to 2.931 percent.

STI and JPM lowered their rate two bps. JPM also lowered their 20-year mortgage rate 11 bps to 3.35 percent.

The average 5-year adjustable rate mortgage (ARM) advanced less than one point to 3.053 percent.

Jumbo Loans

Jumbo mortgage rates were mixed. The average 15-year jumbo mortgage rate advanced slightly, however the 30-year jumbo loan rate fell five bps.

By: John Waters
Business Reporter

Benchmark Chart:

Friday 1 Day 5 Day 30 Day 100-Day 100-Day
12/21/12 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 0 17 -23 -17 3.27
2.82 FHLMC 30 yr 30 days RNY -1 -1 15 26 1.59
2.85 FHLMC 30 yr 60 days RNY -2 -1 14 24 1.68
2.878 FNMA 30 yr 30 days RNY 0 3 11 0 2.635
2.907 FNMA 30 yr 60 days RNY 0 3 12 -3 2.68
0.2097 1 Month LIBOR Rate 0 0 0 -3 0.2075
0.31 3 Month LIBOR Rate 0 0 0 -13 0.308
0.51025 6 Month LIBOR Rate 0 0 -2 -21 0.5085
0.843 1 Year LIBOR Rate 0 0 -2 -21 0.8425
2 Call Money 0 0 0 0 2
2.52 20-year Bond Yield Rate * -5 -1 18 32 2.2
1.77 10-year Note Yield Rate * -4 -1 16 26 1.51
0.15 1-Year Note Yield Rate * 0 2 -3 -2 0.13
0.06 3-month Note Yield Rate * 0 1 -3 -3 0.04
1.011 11th District Cost of Funds 0 0 -3 -11 1.011
2.460 Difference 3-mo & 20 yr ** -5 -2 21 35 2.11
1.653 Difference 10yr Note 30yr Loan 0 -1 -13 -44 1.632492
* Treasury Yields - DAILY
** Pos change - economy to improve soon (probit model)

Mortgage Rate Chart:

Best Syndication News Mortgage Survey
Friday 1 Day 5 Day 30 Day 100-Day 100-Day
12/21/12 National Average APR* Point Ch. Point Ch. Point Ch. Point Ch. Low
3.423% Average 30 yr fixed -4 -2 3 -18 3.31%
3.924% Average 30 yr FHA -1 -1 -1 -11 3.81%
3.695% Average 30-yr VA -1 -1 5 -16 3.60%
2.931% Average 15 year FRM -1 -1 0 -19 2.92%
3.053% Average 5/1 ARM 0 1 -2 -10 3.04%
3.898% 30 Yr Fixed Jumbo -5 3 4 -23 3.78%
3.071% 15 Yr Fixed Jumbo 0 5 4 -10 2.97%
12/21/12 Sun Trust Bank 1 Day 5 Day 30 Day 100-Day 100-Low
3.50% 30 Yr Fixed Conventional -2 0 3 -48 3.43%
2.88% 15 Yr Fixed Conventional -2 -1 -5 -55 2.79%
4.09% 30 Yr Jumbo Fixed 0 7 9 -27 3.53%
2.94% Agency 5/1 ARM 30 Yr 0 0 4 -25 2.42%
2.96% Agency 7/1 ARM 30 Yr 0 1 7 -20 2.87%
4.30% 30 Yr FHA - Fixed -2 -1 -7 9 4.05%
12/21/12 Chase 1 Day Pt 5 Day Pt 30 Day Pt 100-Day 100-Low
3.48% 30-Year Fixed Rate -10 0 4 -22 3.32%
3.35% 20-Year Fixed Rate -11 -2 1 -24 3.23%
2.90% 15-Year Fixed Rate -2 0 4 -22 2.79%
3.05% 7/1 ARM -4 1 3 -15 2.98%
3.06% 5/1 ARM -1 0 4 -13 2.98%
* Average includes more banks than listed

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