Current Mortgage Rates Today – JPMorgan Chase and U.S. Bank lower loan rates again

Fixed Mortgage Rates

(Best Syndication News) Mortgage interest rates dropped again despite a rise in the secondary lending markets (see the mortgage rate charts below). PNC, JPMorgan Chase, and U.S. Bank lowered their loan rates while SunTrust raised them.

Benchmarks

Although U.S. President Barack Obama expressed optimism Friday that a fiscal-cliff deal could be reached by the New Year, hopes were crushed Sunday as Congressional leaders continued to squabble over details. This time the hold-up is in the Senate.

The Whitehouse hoped Democrat Majority Leader Harry Reid could negotiate with Republican Minority Leader Mitch McConnell on a solution to fiscal crisis. But late Sunday talks broke off between the two sides and there was no legislation to vote on.

The Dow Jones Industrial Average dissolved Friday, dropping more than 150 points in one day. Even the broader S&P 500 slipped more than one percent while the NASDAQ declined 0.86 percent.

The bad news in the United States didn’t disrupt equity markets in Asia Monday. The Shanghai Composite Index (China) is already up 0.82 percent in early trading. The Heng Seng (Hong Kong) index is up a fraction but the Nikkei 225 is already 0.70 percent higher this New Year’s Eve.

Even if a solution is reached to the fiscal cliff, investors are still concerned about a renewed battle over the debt limit. Some Republican Senators and Representatives said they will not be willing to raise the debt ceiling unless cuts are made to entitlements like Medicare and Social Security. Treasury Secretary Timothy Geithner warned Congress that the U.S. will default if the debt limit is not raised within the next couple months.

Competition for U.S. government bonds and notes increased as money flowed into the safe havens. Prices increased driving yields lower. The 10-year note yield, a common benchmark for the 30-year fixed rate mortgage (FRM), fell one basis point to 1.73 percent (see the benchmark chart below).

Secondary lenders were mixed. The Federal Home Loan Mortgage Corp (OTC:FMCC) disregarded the shift in capital markets and raised their required net yield (RNY) rates. Meanwhile, the Federal National Mortgage Association (OTC:FNMA) didn’t modify their RNY rates.

The London InterBank Offered Rate (LIBOR) was mostly lower. The 1-year LIBOR was unchanged, however the 6-month, 3-month, and 1-month LIBOR rates dropped.

The National Association of Realtors (NAR) said pending home sales increased 1.7 percent in November. Analysts were looking for just a one-percent gain despite an increase of five percent in October. Year-on-year, home sales are up 9.8 percent.

Martin Connor, CEO of homebuilder Toll Brothers Inc (NYSE:TOL), said sales of new homes should continue to improve in 2013 as long as consumer confidence stays positive. Mr. Connor said that confidence will hinge on the fiscal cliff issue and advancing home prices.

30-Year Fixed Mortgage Rates

The average 30-year fixed mortgage rate fell two basis points (bps) to 3.413 percent (see the benchmark chart below). The difference between the 10-year note yield and the 30-year loan tightened one point to 1.683 percent.

The average FHA loan rate gained slightly but the average VA mortgage rate fell five bps to 3.651 percent.

U.S. Bancorp (NYSE:USB) lowered their conventional 30-year mortgage rate nine bps to 3.35 percent. USB also lowered their VA loans 13 bps to 3.70 percent.

JPMorgan Chase & Co. (NYSE:JPM) lowered their fixed rate two bps to 3.47 percent.

15-Year FRM and 5/1 ARM

The average 15-year fixed rate mortgage fell one basis point to 2.929 percent.

USB lowered their 15-year rate but also lowered their 20-year loan rate three bps to 3.41 percent.

JPM lowered both their 20-year and 15-year mortgage rates.

The average 5-year adjustable rate mortgage (ARM) fell one point to 3.051 percent.

By: John Waters
Business Reporter

Benchmark Chart:

Friday 1 Day 5 Day 30 Day 100-Day 100-Day
12/28/12 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
2.81 FHLMC 30 yr 30 days RNY 3 -1 12 14 1.59
2.85 FHLMC 30 yr 60 days RNY 3 0 12 12 1.68
2.867 FNMA 30 yr 30 days RNY 0 -1 5 -11 2.635
2.896 FNMA 30 yr 60 days RNY 0 -1 5 -14 2.68
0.2097 1 Month LIBOR Rate 0 0 0 -3 0.2075
0.308 3 Month LIBOR Rate 0 0 0 -13 0.308
0.50825 6 Month LIBOR Rate 0 0 -1 -21 0.50825
0.8435 1 Year LIBOR Rate 0 0 -2 -20 0.8425
2 Call Money 0 0 0 0 2
2.47 20-year Bond Yield Rate * -1 -5 17 8 2.29
1.73 10-year Note Yield Rate * -1 -4 15 5 1.57
0.15 1-Year Note Yield Rate * 0 0 -2 -4 0.13
0.01 3-month Note Yield Rate * -7 -5 -7 -10 0.01
1.011 11th District Cost of Funds 0 0 -3 -11 1.011
2.460 Difference 3-mo & 20 yr ** 6 0 24 18 2.2
1.683 Difference 10yr Note 30yr Loan -1 3 -18 -30 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
12/28/12 National Average APR* Point Ch. Point Ch. Point Ch. Point Ch. Low
3.413% Average 30 yr fixed -2 -1 -3 -25 3.31%
3.928% Average 30 yr FHA 0 0 -2 -15 3.81%
3.651% Average 30-yr VA -5 -4 -5 -24 3.60%
2.929% Average 15 year FRM -1 0 -4 -20 2.92%
3.051% Average 5/1 ARM -1 0 -3 -11 3.04%
3.878% 30 Yr Fixed Jumbo -3 -2 4 -30 3.78%
3.042% 15 Yr Fixed Jumbo -5 -3 -2 -18 2.97%
12/28/12 U.S. Bank 1 Day 5 Day 30 Day 100-Day 100-Low
3.35% 30-Year Fixed -9 -9 -21 -50 3.34%
3.41% 20-Year Fixed -3 -3 -8 -32 3.39%
2.71% 15-Year Fixed -2 -2 -16 -50 2.71%
2.82% 10-Year Fixed -2 -2 -20 -37 2.82%
3.79% FHA 30-Year 0 0 0 -26 3.71%
3.43% FHA 15-Year 0 0 0 0 3.29%
3.70% VA 30-Year -13 -13 -13 -38 3.70%
3.32% VA 15-Year 0 0 -13 -38 3.32%
3.48% 3-Year ARM -3 -6 -9 -21 3.48%
3.28% 5-Year ARM -4 -4 -9 -17 3.28%
3.60% Jumbo 30-Year 0 0 13 -25 3.47%
2.77% Jumbo 15-Year -13 -13 0 -25 2.64%
12/28/12 Chase 1 Day Pt 5 Day Pt 30 Day 100-Day 100-Low
3.47% 30-Year Fixed Rate -2 -1 -1 -25 3.32%
3.34% 20-Year Fixed Rate -3 -1 -3 -27 3.23%
2.94% 15-Year Fixed Rate -5 4 0 -11 2.79%
3.04% 7/1 ARM -5 -1 0 -13 2.98%
3.06% 5/1 ARM -1 0 -1 -9 2.98%
* Average includes more banks than listed

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