(Best Syndication News) Mortgage interest rates were higher today despite a downward shift in the secondary market (see the mortgage rate charts below). JPMorgan Chase, PNC, SunTrust, and KeyBank raised their loan rates while Bank of America moved in the opposite direction.
Holiday sales didn’t pan-out this year providing pessimism to an already uncertain market. The MasterCard Advisors said that spending only increased 0.7 percent from October 28th through December 24th. In their SpendingPulse report, the research arm of MasterCard said that Holiday spending was two percent above last year; the National Retail Federation expected a 4.1 percent increase.
Sales dropped in the Northeast and Mid-Atlantic regions, mostly because of Hurricane Sandy. The Advisors also point out that consumer confidence is suffering because of the fiscal-cliff issue. There were some bright spots in retail sales: home furnishings and jewelry.
Dana Telsey, CEO and Chief Research Officer for the Telsey Advisory Group, told reporters that Michael Kors Holdings Ltd (NYSE:KORS) and American Eagle Outfitters (NYSE:AEO) were among the companies doing well this season.
With just one week left, hopes are fading for a solution to the fiscal cliff issue. Last week, House of Representatives Speaker John Boehner proposed a compromise; but his solution was rejected by the President and even members of his own party. Boehner said it is now up to Senate Leader Harry Reid to solve the problem. Reid is proposing extending the tax cuts for those making $250,000 or less, some spending cuts, and an extension of unemployment benefits.
Stock markets in the United States opened higher but slowly moved lower before shifting back up. The Dow Jones Industrial Average (DJIA) was down only 25 points by the closing bell. The broader S&P 500 and tech-heavy NASDAQ fell 0.48 percent and 0.74 percent respectively.
Money flowed into the U.S. government safe-havens, according to data released by the Treasury Department. This drove prices higher and yields lower. The 10-year note yield fell two basis points (bps) to 1.77 percent (see the benchmark chart below).
The Bond Buyer’s 20-year bond index advanced 20 bps to 3.64 percent last week.
The secondary lenders, including Freddie Mac and Fannie Mae, lowered their required net yield (RNY) rates. The Federal Home Loan Mortgage Corp (OTC:FMCC) lowered their 30-year 60-day RNY rate to 2.83 percent. The Federal National Mortgage Association (OTC:FNMA) lowered their rate to 2.898 percent.
The London InterBank Offered Rate was unchanged.
The Standard and Poor’s Case-Shiller index of 20 major cities slipped 0.1 percent in October from September, however the rating agency estimates that home prices increased 4.3 percent since October 2011.
The average 30-year fixed mortgage rate advanced two bps to 3.454 percent (see the mortgage rate chart below). The difference between the 10-year note yield and the 30-year mortgage expanded four bps to 1.684 percent.
The average FHA mortgage rate climbed to 3.930 percent and the average VA loan rate advanced to 3.697 percent.
PNC Financial Services (NYSE:PNC) raised their conventional rate eight bps to 3.71 percent.
Bank of America Corp (NYSE:BAC) lowered their 30-year rate one point to 3.53 percent.
The average 15-year fixed rate mortgage (FRM) climbed to 2.943 percent.
PNC raised their 15-year rate four bps but also raised their 20-year loan rate eight bps.
The average 5-year adjustable rate mortgage (ARM) advanced less than one point to 3.063 percent.
BAC lowered their ARM rate one point to 3.01 percent.
By: John Waters
|Wednesday||1 Day||5 Day||30 Day||100-Day||100-Day|
|12/26/12||Benchmark||Point Ch.||Point Ch.||Point Ch.||Point Ch.||Low|
|3.64||Bond Buyer's 20-yr bond index||20||20||9||3||3.27|
|2.79||FHLMC 30 yr 30 days RNY||-3||-4||13||17||1.59|
|2.83||FHLMC 30 yr 60 days RNY||-3||-4||13||15||1.68|
|2.869||FNMA 30 yr 30 days RNY||0||-4||8||-6||2.635|
|2.898||FNMA 30 yr 60 days RNY||0||-4||8||-8||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||-1||-21||0.5085|
|0.843||1 Year LIBOR Rate||0||0||-2||-20||0.8425|
|2.52||20-year Bond Yield Rate *||-1||-6||21||23||2.29|
|1.77||10-year Note Yield Rate *||-2||-5||18||18||1.57|
|0.16||1-Year Note Yield Rate *||0||1||-2||0||0.13|
|0.09||3-month Note Yield Rate *||3||4||-2||-1||0.04|
|1.011||11th District Cost of Funds||0||0||-3||-11||1.011|
|2.430||Difference 3-mo & 20 yr **||-4||-10||23||24||2.19|
|1.684||Difference 10yr Note 30yr Loan||4||2||-14||-37||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|
|12/26/12||National Average APR*||Point Ch.||Point Ch.||Point Ch.||Point Ch.||Low|
|3.454%||Average 30 yr fixed||2||-3||4||-19||3.31%|
|3.930%||Average 30 yr FHA||0||-1||-1||-12||3.81%|
|3.697%||Average 30-yr VA||0||-1||4||-18||3.60%|
|2.943%||Average 15 year FRM||0||0||2||-18||2.92%|
|3.063%||Average 5/1 ARM||0||1||-1||-9||3.04%|
|3.914%||30 Yr Fixed Jumbo||-2||-3||6||-23||3.78%|
|3.084%||15 Yr Fixed Jumbo||1||2||5||-12||2.97%|
|12/26/12||PNC - National City Bank||1 Day||5 Day||30 Day||100-Day||100-Low|
|2.82%||10 Year Fixed||7||5||10||7||2.44%|
|2.87%||15 Year Fixed||4||0||5||0||2.48%|
|3.60%||20 Year Fixed||8||-3||22||8||3.14%|
|3.71%||30 Year Fixed||8||-3||12||-4||3.33%|
|2.94%||10 Year Fixed||10||0||13||10||2.44%|
|3.03%||15 Year Fixed||2||-2||11||-13||2.49%|
|3.85%||20 Year Fixed||1||-8||25||13||3.15%|
|3.99%||30 Year Fixed||1||-1||1||2||3.35%|
|12/26/12||Bank of America||1 Day Pt||5 Day Pt||30 Day||100-Day||100-Low|
|3.53%||30-Year Fixed Rate||-1||-8||2||-15||3.37%|
|3.01%||5/1 ARM Rate||-1||0||-8||-17||2.97%|
|3.42%||30-Year Fixed Rate||0||0||-8||-25||3.40%|
|2.88%||15-Year Fixed Rate||0||0||-6||-14||2.83%|
|* Average includes more banks than listed|
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