Current Mortgage Rates Today – Loans rates jump as investor confidence continues to soar

30-Year Mortgage Graph

(Best Syndication News) It was a good week on Wall Street, and that translated into higher mortgage interest rates (see the mortgage rate charts below). JPMorgan Chase, Bank of America, Wells Fargo, and HSBC were among the banks raising their loan rates.

Benchmarks

The December jobs report provided the optimism to keep alive the rally spurred by the fiscal-cliff compromise. Stocks were higher on news that businesses added 155,000 new non-farm jobs last month. Economists expected 150K new jobs and the November figure was revised upward to 161,000 new jobs.

The U.S. Department of Labor said that the unemployment rate was steady at 7.8 percent. Despite the good news, economists see the average 153,000 jobs created per month last year as only a moderate recovery.

The expiration of the payroll tax cut could affect spending this year, but companies are still hiring. However, uncertainty surrounding the debt limit and sequestration could limit the robustness of the recovery.

The Institute for Supply Management (ISM) said their non-manufacturing index inched higher from 54.7 in November to 56.1 in December.

The NASDAQ index benefited the most from the fiscal cliff agreement made last week. The index jumped 4.8 percent over the 5-day period. By comparison, the Dow Jones Industrial Average (DJIA) climbed only 3.8 percent and the broader S&P 5000 index climbed 4.6 percent.

The NASDAQ would have been even higher, but the tech sector took a hit on Friday. All of the sectors were higher except the technology sector. Although Apple, Microsoft, and Oracle were all lower, there were some winners. OSI Systems, Inc. (NASDAQ:OSIS) climbed more than six percent during the session. Last month the company suffered a downgrade, but now some investors believe the stock may have bottomed-out.

The Treasury Department data indicated that bond and note prices decreased as money flowed back into equities. This drove yields higher. The 10-year note yield, a common benchmark for the 30-year fixed rate mortgage (FRM), climbed one basis point to 1.93 percent (see the benchmark chart below).

The secondary lenders followed the trend. The Federal Home Loan Mortgage Corp (OTC:FMCC) raised their 30-year 60-day required net yield (RNY) rate five basis points (bps) to 2.99 percent. The Federal National Mortgage Association (OTC:FNMA) raised their RNY rate 16 bps to 3.08 percent.

The London InterBank Offered Rate (LIBOR) was mostly lower. The 6-month LIBOR fell less than one point to 0.50125 percent and the 1-year LIBOR slipped to 0.8385 percent.

30-Year Fixed Mortgage Rates

The average 30-year mortgage rate jumped eight bps to 3.570 percent (see the mortgage rate chart below). The difference between the 10-year note yield and the 30-year mortgage rate expanded one point to 1.640 percent.

The average 30-year FHA loan rate advanced two bps to 4.001 percent and the average VA mortgage rate climbed seven bps to 3.857 percent.

HSBC Holdings plc (ADR) (NYSE:HBC) raised their purchase and refinance rates 13 bps. The HBC CommunityWorks rate advanced 13 bps to 3.50 percent.

JPMorgan Chase & Co. (NYSE:JPM) raised their conventional rate nine bps to 3.69 percent.

15-Year FRM and 5/1 ARM

The average 15-year fixed rate mortgage climbed two bps to 2.983 percent.

HBC didn’t raise their 15-year loan rate but JPM raised their 15-year rate two bps. JPM also raised their 20-year mortgage rate 14 bps to 3.62 percent.

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

By: John Waters
Business Reporter

Benchmark Chart:

Friday 1 Day 5 Day 30 Day 100-Day 100-Day
01/04/13 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 -17 3.27
2.96 FHLMC 30 yr 30 days RNY 6 15 20 19 1.59
2.99 FHLMC 30 yr 60 days RNY 5 14 19 17 1.68
3.039 FNMA 30 yr 30 days RNY 15 17 21 6 2.635
3.08 FNMA 30 yr 60 days RNY 16 18 22 5 2.68
0.2077 1 Month LIBOR Rate 0 0 0 -3 0.2075
0.305 3 Month LIBOR Rate 0 0 -1 -13 0.305
0.50125 6 Month LIBOR Rate 0 -1 -3 -22 0.50125
0.8385 1 Year LIBOR Rate 0 -1 -2 -21 0.8385
2 Call Money 0 0 0 0 2
2.7 20-year Bond Yield Rate * 0 23 28 25 2.29
1.93 10-year Note Yield Rate * 1 20 24 20 1.57
0.15 1-Year Note Yield Rate * 0 0 -2 -4 0.13
0.07 3-month Note Yield Rate * -1 6 -3 -4 0.01
1 11th District Cost of Funds 0 -1 -4 -12 1
2.630 Difference 3-mo & 20 yr ** 1 17 31 29 2.2
1.640 Difference 10yr Note 30yr Loan 7 -4 -11 -32 1.573746
* 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
01/04/13 National Average APR* Point Ch. Point Ch. Point Ch. Point Ch. Low
3.570% Average 30 yr fixed 8 16 13 -12 3.31%
4.001% Average 30 yr FHA 2 7 7 -14 3.81%
3.857% Average 30-yr VA 7 21 16 -5 3.60%
2.983% Average 15 year FRM 2 5 1 -12 2.92%
3.066% Average 5/1 ARM 0 1 0 -7 3.04%
4.004% 30 Yr Fixed Jumbo 6 13 17 -21 3.78%
3.175% 15 Yr Fixed Jumbo 4 13 13 -5 2.97%
01/04/13 HSBC 1 Day 5 Day 30 Day 100-Day 100-Day
3.09% 15 Year Purchase 0 0 0 -13 3.09%
3.35% 15 Year Refinance 0 0 0 -13 3.35%
3.75% 30 Year Purchase 13 13 13 -13 3.50%
4.01% 30 Year Refinance 13 13 13 -13 3.75%
3.79% 30 Year FHA/VA Purchase 0 0 0 -13 3.66%
3.92% 30 Year FHA/VA Refinance 0 0 0 -13 3.79%
3.50% 30 Year CommunityWorks 13 13 25 13 3.12%
3.33% 3/1 YR LIBOR ARM 0 0 0 -17 3.33%
3.34% 5/1 YR LIBOR ARM 0 0 0 -12 3.34%
01/04/13 Chase 1 Day Pt 5 Day Pt 30 Day 100-Day 100-Low
3.69% 30-Year Fixed Rate 9 22 23 -3 3.32%
3.62% 20-Year Fixed Rate 14 28 27 3 3.23%
3.04% 15-Year Fixed Rate 2 11 11 2 2.79%
3.14% 7/1 ARM 5 11 12 -2 2.98%
3.10% 5/1 ARM 3 4 8 -6 2.98%
* Average includes more banks than listed

Click here for Current Mortgage Rates Today (MORE BANKS)

Report Error

Share/Save/Bookmark

      

Post to Facebook

Important: The material on Best Syndication is for informational purposes only and is not meant to be advice. Authors may have or will receive monetary compensation from the company's product/s mentioned. You should always seek professional advice before making any legal, financial or medical decisions and this website cannot substitute or replace any trained professional consultation.
Use of this site means that you agree to our TERMS OF SERVICE

Advertise On This Site
Copyright © 2006-2015 By Best Syndication All Rights Reserved