Current Mortgage Rates Today – SunTrust lowers rates as KeyBank raises them

Adjustable Rate Mortgage

(Best Syndication News) Mortgage interest rates dropped as lenders reacted to the migrating capital markets (see the mortgage rate charts below). Citibank, JPMorgan Chase, and SunTrust lowered their rates while PNC and KeyBank raised them.

Benchmarks

Equity markets opened higher but didn’t stay in positive territory very long; the three major indexes quickly descended quickly as investors began to price-in the effects of the fiscal cliff. Many analysts now believe the forced austerity is inevitable.

Last week House Speaker John Boehner said that it was up to President Obama and Senate Leader Harry Reid to come up with a deal that could make it through Congress. Negative comments throughout the day drove equity prices even lower.

Reid called the House of Representatives a “dictatorship” and members of both political parties blamed each other for letting time run out. The Senate Majority Leader said that Boehner was dragging his feet by not bringing legislation already passed by the Senate to the House floor.

The Senate is proposing keeping the Bush tax cuts for those making $250,000 or less. Last week Boehner proposed a plan to keep taxes lower for those making $1 million or less.

Stocks began to move upward after it was announced that the House of Representatives will reconvene on Sunday. By the closing bell the Dow Jones Industrial Average (DJIA) closed down just 18 points (-0.14%). The broader S&P 500 and tech-heavy NASDAQ closed down 0.12 percent and 0.14 percent respectively.

Money flowed into U.S. government securities, according to data released by the U.S. Treasury Department. Prices increased driving yields lower. The 10-year note yield, a common benchmark for the 30-year fixed rate mortgage (FRM), slipped three basis points (bps) to 1.74 percent (see the benchmark chart below).

The secondary lenders, including Fannie Mae and Freddie Mac, lowered their required net yield (RNY) rates. The Federal Home Loan Mortgage Corp (OTC:FMCC) lowered their 30-year 60-day RNY rate one point to 2.82 percent. The Federal National Mortgage Association (OTC:FNMA) lowered their RNY rate to 2.896 percent.

The London InterBank Offered Rate (LIBOR) was mostly higher. The 6-month LIBOR was unchanged, however the 1-year LIBOR advanced to 0.8435 percent.

The U.S. Department of Labor said that initial jobless claims declined to 350,000 last week. That was below forecasts and below the previous week’s figure of 362,000.

There were 377,000 new home sales in November, according to the U.S. Department of Commerce. That was below analyst expectations but higher than the 361,000 reported in October.

The fiscal cliff crisis is also affecting consumer confidence. The Conference Board said that their consumer confidence index fell to 65.1 in December. That was below economist expectations and below the 71.5 registered in November.

30-Year Fixed Mortgage Rates

The average 30-year fixed mortgage rate fell two bps to 3.437 percent (see the mortgage rate chart below). The difference between the 10-year note yield and the 30-year mortgage expanded one point to 1.697 percent.

The average FHA mortgage rate fell slightly to 3.925 percent and the average VA loan rate advanced to 3.697 percent.

SunTrust Banks, Inc. (NYSE:STI) lowered their conventional rate three bps to 3.48 percent. The lender also lowered their FHA rate two bps to 4.30 percent.

KeyCorp (NYSE:KEY) raised their rate a fraction to 3.55 percent.

15-Year FRM and 5/1 ARM

The average 15-year mortgage rate fell less than one point to 2.939 percent.

STI lowered their rate two points to 2.88 percent.

KEY lowered their rate two bps to 3.066 percent.

The average 5-year adjustable rate mortgage (ARM) advanced to 3.066 percent.

Jumbo Loans

While the average 30-year jumbo mortgage rate diminished the average 15-year jumbo loan rate advanced. STI lowered their jumbo loans one point to 4.09 percent.

By: John Waters
Business Reporter

Benchmark Chart:

Thursday 1 Day 5 Day 30 Day 100-Day 100-Day
12/27/12 Benchmark Point Ch. Point Ch. Point Ch. Point Ch. Low
3.250 Prime Rate 0 0 0 0 3.25
3.64 Bond Buyer's 20-yr bond index 0 20 9 -2 3.27
2.78 FHLMC 30 yr 30 days RNY -1 -5 7 10 1.59
2.82 FHLMC 30 yr 60 days RNY -1 -5 7 9 1.68
2.867 FNMA 30 yr 30 days RNY 0 -1 3 -9 2.635
2.896 FNMA 30 yr 60 days RNY 0 -1 3 -11 2.68
0.2117 1 Month LIBOR Rate 0 0 0 -3 0.2075
0.311 3 Month LIBOR Rate 0 0 0 -13 0.308
0.51025 6 Month LIBOR Rate 0 0 -1 -21 0.5085
0.8435 1 Year LIBOR Rate 0 0 -2 -20 0.8425
2 Call Money 0 0 0 0 2
2.48 20-year Bond Yield Rate * -4 -9 17 11 2.29
1.74 10-year Note Yield Rate * -3 -7 15 8 1.57
0.15 1-Year Note Yield Rate * -1 0 -3 -4 0.13
0.08 3-month Note Yield Rate * -1 2 -2 -3 0.04
1.011 11th District Cost of Funds 0 0 -3 -11 1.011
2.400 Difference 3-mo & 20 yr ** -3 -11 19 14 2.2
1.697 Difference 10yr Note 30yr Loan 1 5 -15 -32 1.632492
* Treasury Yields - DAILY
** Pos change - economy to improve soon (probit model)

Mortgage Rate Chart:

Best Syndication News Mortgage Survey
Thursday 1 Day 5 Day 30 Day 100-Day 100-Day
12/27/12 National Average APR* Point Ch. Point Ch. Point Ch. Point Ch. Low
3.437% Average 30 yr fixed -2 -2 0 -24 3.31%
3.925% Average 30 yr FHA 0 -1 -2 -16 3.81%
3.697% Average 30-yr VA 0 -1 -1 -20 3.60%
2.939% Average 15 year FRM 0 0 -1 -19 2.92%
3.066% Average 5/1 ARM 0 1 -1 -9 3.04%
3.910% 30 Yr Fixed Jumbo 0 -4 7 -23 3.78%
3.088% 15 Yr Fixed Jumbo 0 2 7 -13 2.97%
12/27/12 Sun Trust Bank 1 Day 5 Day 30 Day 100-Day 100-Low
3.48% 30 Yr Fixed Conventional -3 -5 -5 -52 3.43%
2.88% 15 Yr Fixed Conventional -2 -2 -6 -61 2.79%
4.09% 30 Yr Jumbo Fixed -1 -1 9 -32 3.53%
2.94% Agency 5/1 ARM 30 Yr 0 0 4 -25 2.42%
2.95% Agency 7/1 ARM 30 Yr -1 -1 7 -24 2.87%
4.30% 30 Yr FHA - Fixed -2 -3 -9 -7 4.05%
12/27/12 Key Bank 1 Day Pt 5 Day Pt 30 Day 100-Day 100-Low
3.55% 30-yr Fixed Rate 0 -4 -9 -26 3.45%
2.90% 15-yr Fixed Rate -2 -4 -8 -18 2.89%
Adjustable Rate Mortgage
3.15% 10/1 ARM -4 -7 -3 -5 3.10%
3.05% 7/1 ARM -2 -2 5 2 2.97%
3.04% 5/1 ARM -2 -4 1 -2 3.00%
3.58% 3/1 ARM 0 -2 0 9 3.43%
FHA Loans
3.48% 30-yr FHA 0 -1 -2 -23 3.34%
3.55% 20-yr FHA 0 -8 -7 -21 3.39%
3.41% 15-yr FHA 0 -1 -27 2 3.32%
VA Loans
3.47% 30-yr VA 0 -3 -2 -23 3.34%
3.49% 25-yr VA 0 -3 -2 -22 3.35%
3.54% 20-yr VA 0 -8 -8 -21 3.39%
3.41% 15-yr VA -2 -1 -48 3 3.35%
* Average includes more banks than listed

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