(Best Syndication News) Mortgage interest rates inched higher today despite a downturn in some of the benchmarks (see the mortgage rate charts below). JPMorgan Chase, Bank of America, and PNC raised their rates while Citibank lowered them.
Stocks continued to move higher as investors continued their reluctant migration back into equities later in the session Friday. The three major indexes were below par early on but the blue-chips broke into positive territory by the closing bell.
The U.S. Department of Commerce said that the trade deficit increased nearly $49 billion in November. That was a 15.8 percent increase over October’s revised figure of $42.1 billion. The increase was above expectations; analysts had expected the trade gap to increase between $42 and $45 billion. Consumers appear to be purchasing more consumer goods.
The three major U.S. indexes were mixed. The Dow Jones Industrial Average (INDEXDJX:.DJI) ended just 17 points higher. The NASDAQ also inched 3.88 points (+0.1%) higher but the broader S&P 500 fell 0.07 points (-0.00%).
All three indexes were higher on the week. The DJI climbed 0.4 percent while the NASDAQ and S&P 500 added 0.8 percent and 0.4 percent respectively.
Wells Fargo & Company (NYSE:WFC) was the first major lender to release their earnings results this season. Although the bank reported better-than-expected results, the stock price fell 30 cents (-0.85%) during the session. Investors are concerned about loan growth. The WFC net-interest margin, the difference between the interest they pay and charge, declined more than expected.
On Wednesday, J.P. Morgan will report their earnings and then on Thursday Bank of America and Citibank will report their earnings.
The U.S. Treasury Department data showed a migration of money into government bonds and notes. Prices increased driving yields lower. The 10-year note yield, a common benchmark for the 30-year fixed rate mortgage (FRM), fell two basis points (bps) to 1.89 percent (see the benchmark chart below).
The secondary lenders were mixed. The Federal Home Loan Mortgage Corp (OTC:FMCC) raised their 30-year 60-day required net yield (RNY) rate one point to 2.91 percent. The Federal National Mortgage Association (OTC:FNMA) lowered their rate four bps to 2.932 percent.
The London InterBank Offered Rate (LIBOR) was mostly lower. The 6-month LIBOR fell to 0.496 percent and the 1-year LIBOR fell to 0.821 percent.
The average 30-year FRM advanced one basis point to 3.532 percent (see the mortgage rate chart below). The difference between the 10-year note yield and the 30-year mortgage expanded three bps to 1.642 percent.
The average FHA mortgage rate advanced to 3.984 percent and the VA loan rate climbed to 3.817 percent.
JPMorgan Chase & Co. (NYSE:JPM) raised their conventional 30-year rate one basis point to 3.58 percent.
PNC Financial Services (NYSE:PNC) raised their purchase mortgage rate one point to 3.75 percent.
The average 15-year fixed mortgage rate advanced less than one point to 2.975 percent.
JPM raised their 15-year loan rate four bps to 3.04 percent. The lender raised their 20-year mortgage rate even more, up eight bps to 3.47 percent.
PNC didn’t change their 15-year rate; however, the bank raised their 20-year loan rate one point to 3.64 percent.
The average 5-year adjustable rate mortgage (ARM) advanced one point to 3.073 percent.
By: John Waters
|Friday||1 Day||5 Day||30 Day||100-Day||100-Day|
|01/11/13||Benchmark||Point Ch.||Point Ch.||Point Ch.||Point Ch.||Low|
|3.68||Bond Buyer's 20-yr bond index||0||10||31||-12||3.27|
|2.86||FHLMC 30 yr 30 days RNY||0||-4||18||-8||1.59|
|2.91||FHLMC 30 yr 60 days RNY||1||-3||19||-7||1.68|
|2.903||FNMA 30 yr 30 days RNY||-4||-6||12||-22||2.635|
|2.932||FNMA 30 yr 60 days RNY||-4||-6||12||-24||2.68|
|0.2057||1 Month LIBOR Rate||0||0||-1||-3||0.2057|
|0.304||3 Month LIBOR Rate||0||0||-1||-13||0.304|
|0.496||6 Month LIBOR Rate||0||0||-3||-22||0.496|
|0.821||1 Year LIBOR Rate||0||-1||-4||-22||0.821|
|2.65||20-year Bond Yield Rate *||-3||-5||28||12||2.29|
|1.89||10-year Note Yield Rate *||-2||-3||27||9||1.57|
|0.14||1-Year Note Yield Rate *||0||-1||-4||-6||0.13|
|0.07||3-month Note Yield Rate *||1||0||-2||-4||0.01|
|1||11th District Cost of Funds||0||0||-4||-12||1|
|2.580||Difference 3-mo & 20 yr **||-4||-5||30||16||2.2|
|1.642||Difference 10yr Note 30yr Loan||3||3||-13||-37||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|
|01/11/13||National Average APR*||Point Ch.||Point Ch.||Point Ch.||Point Ch.||Low|
|3.532%||Average 30 yr fixed||1||0||14||-28||3.31%|
|3.984%||Average 30 yr FHA||0||2||6||-32||3.81%|
|3.817%||Average 30-yr VA||0||0||12||-12||3.60%|
|2.975%||Average 15 year FRM||0||0||2||-24||2.92%|
|3.073%||Average 5/1 ARM||1||1||0||-8||3.04%|
|3.931%||30 Yr Fixed Jumbo||0||-1||11||-35||3.78%|
|3.136%||15 Yr Fixed Jumbo||1||0||6||-18||2.97%|
|01/11/13||PNC - National City Bank||1 Day||5 Day||30 Day||100-Day||100-Low|
|2.84%||10 Year Fixed||0||0||10||-15||2.44%|
|2.89%||15 Year Fixed||0||0||5||-25||2.48%|
|3.64%||20 Year Fixed||1||-8||15||-19||3.14%|
|3.75%||30 Year Fixed||1||0||14||-23||3.33%|
|2.96%||10 Year Fixed||0||0||13||-17||2.44%|
|3.05%||15 Year Fixed||0||0||4||-25||2.49%|
|3.94%||20 Year Fixed||0||0||11||-12||3.15%|
|4.10%||30 Year Fixed||0||0||11||-25||3.35%|
|01/11/13||Chase||1 Day Pt||5 Day Pt||30 Day||100-Day||100-Low|
|3.58%||30-Year Fixed Rate||1||-3||22||-40||3.32%|
|3.47%||20-Year Fixed Rate||8||-3||20||-28||3.23%|
|3.04%||15-Year Fixed Rate||4||2||11||-9||2.79%|
|* Average includes more banks than listed|
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