Current Mortgage Rates Today – Wells Fargo and U.S. Bank raise their loan rates

5-Year ARM

(Best Syndication News) Mortgage interest rates continued to ascend after a huge run-up in equities (see the mortgage rate charts below). Nearly all of the major banks, including JPMorgan Chase, Citibank, Bank of America, Wells Fargo, and U.S. Bank, raised their loan rates.

Benchmarks

Problems continued to lurk around the corner Thursday as the 113th Congress was sworn into office. Although the House of Representatives and U.S. Senate were able to compromise on some of the fiscal-cliff issues, there are still lingering problems that need to be dealt with over the next two months.

U.S. President Barack Obama has said he would not negotiate on the debt ceiling / limit. Last month Treasury Secretary Timothy Geithner said that the government has about two months before hitting that ceiling.

Congress only dealt with taxation this week; the sequestration issue is still on the table. The spending cuts set to take effect on March 1st could send the economy back into a recession.

The enthusiasm that pushed the Dow Jones Industrial Average (DJIA) index up more than three hundred points Wednesday turned to caution on Thursday. The three major U.S. indexes dropped as investors began to take profits. The DJIA index fell 21 points and the broader S&P 500 and tech-heavy NASDAQ fell 0.21 percent and 0.38 percent respectively.

About half of the sectors were lower Thursday, with the basic materials sector dropping 1.17 percent. The Phoenix based mining company, Freeport-McMoRan Copper & Gold Inc. (NYSE:FCX), dropped nearly one percent during the session. Gold prices were lower as the possible sequestration begin to sink in. February gold on the COMEX fell $14.20 wiping-out the $13 gain made on Wednesday.

The Federal Reserve would like to halt their longer-term bond-buying program by the end of 2013. In their Federal Open Market Committee (FOMC) meeting minutes for December 11th and 12th, the central bank said the economy continues to grow at a “moderate pace”.

The bookkeeping and payroll firm ADP said the private sector added 215,000 jobs in December. That was better than the 148,000 (revised upward) figure for November.

The U.S. Treasury Department data suggests that money flowed into government bonds and notes. The 10-year note yield, a common benchmark for the 30-year fixed rate mortgage (FRM), advanced six basis points (bps) to 1.92 percent (see the benchmark chart below).

Secondary lenders were mixed. Fannie Mae lowered their required net yield (RNY) rates while Freddie Mac raised them. The Federal National Mortgage Association (OTC:FNMA) lowered their 30-year 60-day RNY rate two bps to 2.921 percent. The Federal Home Loan Mortgage Corp (OTC:FMCC) raised their RNY rate seven bps to 2.94 percent.

The London InterBank Offered Rate (LIBOR) was mostly lower. The 6-month LIBOR fell to 0.50325 percent and the 1-year LIBOR fell to 0.8395 percent.

30-Year Fixed Mortgage Rates

The average 30-year FRM advanced four bps to 3.494 percent (see the mortgage rate chart below). The difference between the 10-year note yield and the 30-year mortgage tightened two bps to 1.574 percent.

The average fixed FHA rate climbed four bps to 3.976 percent and the VA loan rate jumped nine bps to 3.790 percent.

Wells Fargo & Company (NYSE:WFC) raised their conventional rate 13 bps to 3.80 percent. In certain areas, the lender raised their FHA loan rate 28 bps to 4.50 percent.

U.S. Bancorp (NYSE:USB) raised their 3-year rate 11 bps to 3.58 percent. The lender also raised their VA and FHA financing rates.

15-Year FRM and 5/1 ARM

The average 15-year fixed mortgage rate added one basis point to 2.968 percent.

USB raised their 15-year rate five bps but also increased their 20-year mortgage rate four bps.

The average 5-year adjustable rate mortgage (ARM) climbed one point to 3.063 percent. WFC raised their rate four bps to 2.99 percent.

Jumbo Mortgages

The average 30-year jumbo loan rate advanced one point to 3.940 percent. WFC didn’t raise their 30-year jumbo rate but did raise their 5-year jumbo ARM four bps to 3.12 percent.

By: John Waters
Business Reporter

Benchmark Chart:

Thursday 1 Day 5 Day 30 Day 100-Day 100-Day
01/03/13 Benchmark Point Ch. Point Ch. Point Ch. Point Ch. Low
3.250 Prime Rate 0 0 0 0 3.25
3.58 Bond Buyer's 20-yr bond index 0 -6 17 -8 3.27
2.9 FHLMC 30 yr 30 days RNY 7 12 20 20 1.59
2.94 FHLMC 30 yr 60 days RNY 7 12 20 19 1.68
2.892 FNMA 30 yr 30 days RNY -2 2 9 -8 2.635
2.921 FNMA 30 yr 60 days RNY -2 2 9 -10 2.68
0.2077 1 Month LIBOR Rate 0 0 0 -3 0.2075
0.305 3 Month LIBOR Rate 0 -1 -1 -13 0.305
0.50325 6 Month LIBOR Rate 0 -1 -2 -22 0.50325
0.8395 1 Year LIBOR Rate 0 0 -2 -21 0.8395
2 Call Money 0 0 0 0 2
2.7 20-year Bond Yield Rate * 7 22 30 33 2.29
1.92 10-year Note Yield Rate * 6 18 26 27 1.57
0.15 1-Year Note Yield Rate * 0 0 -1 -4 0.13
0.08 3-month Note Yield Rate * 0 0 0 -3 0.01
1 11th District Cost of Funds 0 -1 -4 -12 1
2.620 Difference 3-mo & 20 yr ** 7 22 30 36 2.2
1.574 Difference 10yr Note 30yr Loan -2 -12 -18 -46 1.573746
* 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
01/03/13 National Average APR* Point Ch. Point Ch. Point Ch. Point Ch. Low
3.494% Average 30 yr fixed 4 6 8 -19 3.31%
3.976% Average 30 yr FHA 4 5 5 -12 3.81%
3.790% Average 30-yr VA 9 9 9 -12 3.60%
2.968% Average 15 year FRM 1 3 2 -15 2.92%
3.063% Average 5/1 ARM 1 0 0 -8 3.04%
3.940% 30 Yr Fixed Jumbo 1 3 14 -24 3.78%
3.133% 15 Yr Fixed Jumbo 1 5 13 -9 2.97%
01/03/13 Wells Fargo 1 Day 5 Day 30 Day 100-Day 100-Day
3.80% 30-Year Fixed 13 13 13 -13 3.42%
4.27% 30-Year Fixed FHA 0 0 0 -14 4.14%
3.06% 15-Year Fixed 0 13 13 -13 2.80%
2.99% 5-Year ARM 4 0 0 -8 2.95%
2.90% 5-Year ARM FHA 0 0 0 -10 2.90%
Certain areas
3.88% 30-Year Fixed 13 13 13 -13 3.63%
4.50% 30-Year Fixed FHA 28 28 28 -28 4.22%
2.99% 5-Year ARM 0 -4 -4 -13 2.99%
Jumbo Loans
4.00% 30-Year Fixed 0 13 25 -25 3.63%
3.12% 5-Year ARM 4 0 9 -13 2.95%
01/03/13 U.S. Bank 1 Day 5 Day 30 Day 100-Day 100-Low
3.58% 30-Year Fixed 11 15 15 -24 3.34%
3.60% 20-Year Fixed 4 17 17 -7 3.39%
2.82% 15-Year Fixed 5 9 2 -38 2.71%
2.95% 10-Year Fixed 5 11 3 -22 2.82%
3.92% FHA 30-Year 13 13 13 -13 3.71%
3.43% FHA 15-Year 0 0 15 -13 3.29%
4.08% VA 30-Year 26 26 26 0 3.70%
3.45% VA 15-Year 13 13 0 -38 3.32%
3.51% 3-Year ARM 0 0 -6 -18 3.48%
3.32% 5-Year ARM 0 0 -4 -12 3.28%
3.60% Jumbo 30-Year 0 0 13 -25 3.47%
2.89% Jumbo 15-Year 0 0 13 -13 2.64%
* Average includes more banks than listed

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