(Best Syndication News) Mortgage interest rates fell sharply following a trend in the secondary and capital markets (see the mortgage rate charts below). JPMorgan Chase and KeyBank raised some of their rates; however, Wells Fargo and Bank of America lowered them.
Stocks were mixed but mostly lower today as investors fretted over the debt ceiling and a possible renegotiation on spending cuts next month. President Barack Obama told Congress that he will not negotiate on the debt ceiling and his Treasury Secretary, Timothy Geithner, said the government will likely run out of money in mid February.
The specter of a replay of last year’s fiscal cliff debate weighed on capital markets. The Whitehouse warns that if the debt ceiling is not raised there could be a global economic crisis as the government defaults on its obligations.
Wall Street traders reacted to the drama being played out in Washington. Although the 30 constituents of the Dow Jones Industrial Average (DJIA) were slightly higher (+0.14%), the broader S&P 500 dropped 0.09 percent.
The NASDAQ was weighed down on news that sales of the Apple Inc. (NASDAQ:AAPL) iPhone could be slowing. Orders for components that make up the popular phone are slowing, according to a Journal report.
The popularity of Samsung’s smartphones is compounding the tech giant’s problems. At the Consumer Electronics Show this year, the trendy smartphones sported a five-inch screen; the iPhone has a four-inch display. AAPL shares dipped below $500 during the session putting pressure on the NASDAQ index, which was down 0.26 percent.
The U.S. Treasury Department said the 10-year note yield was unchanged Monday. The common benchmark for the 30-year mortgage remained at 1.89 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 two basis points (bps) to 2.89 percent. The Federal National Mortgage Association (OTC:FNMA) lowered their RNY rate two bps to 2.911 percent.
The London InterBank Offered Rate (LIBOR) was also lower. The 6-month LIBOR fell one point to 0.491 percent and the 1-year LIBOR fell to 0.819 percent.
The average 30-year fixed rate mortgage (FRM) fell three bps to 3.499 percent (see the mortgage rate chart below). The difference between the 10-year note yield and the 30-year mortgage tightened three bps to 1.609 percent.
The average FHA loan rate fell four bps and the average VA mortgage rate slipped three bps to 3.786 percent.
Wells Fargo & Company (NYSE:WFC) lowered their conventional rate 13 bps to 3.67 percent. The lender also lowered their FHA rate 28 bps to 4.36 percent.
Bank of America Corp (NYSE:BAC) lowered their rate two bps to 3.64 percent.
The average 15-year fixed mortgage rate dipped one point to 2.963 percent.
WFC didn’t modify their 15-year mortgage loan rate but BAC lowered their rate two bps to 2.96 percent.
The average 5-year adjustable rate mortgage (ARM) advanced slightly to 3.076 percent.
By: John Waters
|Monday||1 Day||5 Day||30 Day||100-Day||100-Day|
|01/14/13||Benchmark||Point Ch.||Point Ch.||Point Ch.||Point Ch.||Low|
|3.68||Bond Buyer's 20-yr bond index||0||0||31||-12||3.27|
|2.85||FHLMC 30 yr 30 days RNY||-1||-1||16||7||1.59|
|2.89||FHLMC 30 yr 60 days RNY||-2||-1||16||6||1.68|
|2.881||FNMA 30 yr 30 days RNY||-2||-7||9||-21||2.635|
|2.911||FNMA 30 yr 60 days RNY||-2||-7||9||-23||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|
|0.491||6 Month LIBOR Rate||-1||-1||-4||-23||0.491|
|0.819||1 Year LIBOR Rate||0||-2||-4||-22||0.819|
|2.65||20-year Bond Yield Rate *||0||-1||28||21||2.29|
|1.89||10-year Note Yield Rate *||0||0||27||18||1.57|
|0.14||1-Year Note Yield Rate *||0||0||-4||-5||0.13|
|0.08||3-month Note Yield Rate *||1||1||0||-3||0.01|
|1||11th District Cost of Funds||0||0||-1||-12||1|
|2.570||Difference 3-mo & 20 yr **||-1||-2||28||24||2.2|
|1.609||Difference 10yr Note 30yr Loan||-3||-2||-15||-41||1.573746|
|* Treasury Yields - DAILY|
|** Pos change - economy to improve soon (probit model)|
Mortgage Rate Chart:
|Best Syndication News Mortgage Survey|
|Monday||1 Day||5 Day||30 Day||100-Day||100-Day|
|01/14/13||National Average APR*||Point Ch.||Point Ch.||Point Ch.||Point Ch.||Low|
|3.499%||Average 30 yr fixed||-3||-2||12||-23||3.31%|
|3.941%||Average 30 yr FHA||-4||0||2||-27||3.81%|
|3.786%||Average 30-yr VA||-3||-1||13||-13||3.60%|
|2.963%||Average 15 year FRM||-1||-1||1||-17||2.92%|
|3.076%||Average 5/1 ARM||0||0||1||-5||3.04%|
|3.929%||30 Yr Fixed Jumbo||0||-1||14||-29||3.78%|
|3.136%||15 Yr Fixed Jumbo||0||0||7||-14||2.97%|
|01/14/13||Wells Fargo||1 Day||5 Day||30 Day||100-Day||100-Day|
|4.27%||30-Year Fixed FHA||0||0||0||-41||4.14%|
|2.90%||5-Year ARM FHA||0||0||0||-19||2.90%|
|4.36%||30-Year Fixed FHA||-28||-14||14||-42||4.22%|
|01/14/13||Bank of America||1 Day Pt||5 Day Pt||30 Day||100-Day||100-Low|
|3.64%||30-Year Fixed Rate||-2||-4||20||-14||3.37%|
|3.01%||5/1 ARM Rate||-1||0||-9||-15||2.97%|
|3.42%||30-Year Fixed Rate||0||0||-2||-35||3.40%|
|2.88%||15-Year Fixed Rate||0||0||-6||-27||2.83%|
|* Average includes more banks than listed|
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