Current Mortgage Rates Today – Citibank and Bank of America raise their loan rates

5/1 ARM

(Best Syndication News) Advancing benchmarks continued to push interest rates higher today despite a drop in the secondary lending market (see the mortgage rate charts below). SunTrust bucked the trend and lowered their mortgage loan rates; however JPMorgan Chase, Bank of America, and Citigroup raised their mortgage products.

Benchmarks

Stock prices were higher for the second-straight day as U.S. President Barack Obama nominated Jacob Lew. The optimism was sustained after last week’s agreement on taxes and a positive earnings report registered by Alcoa Inc. (NYSE:AA) on Tuesday. Lew will be the point-man in President Obama’s debt-ceiling negotiations with Republicans in Congress.

New lending rules should help homebuyers better understand their obligations before they sign up for a mortgage. The Consumer Financial Protection Bureau laid-out new regulations that will also help lenders determine the ability of a buyer to make payments on a loan. Borrowers will need to prove their employment and have a minimum credit score.

Their “Ability-to-Repay Rule” was designed to make sure lenders offer “mortgages that consumers can actually afford to pay back.” The goal is to make sure the borrower can repay the loan throughout the entire loan term, not just the introductory phase. Buyers will also need to be able to pay their property taxes.

The Labor Department said that 371,000 Americans signed up for initial jobless claims last week. That was higher than the 365,000 predicted by economists; however, the Department of Labor also revised their figure for the previous week lower.

The lack of bad economic news took pressure off of equities. The Dow Jones Industrial Average (INDEXDJX:.DJI) indexed jumped another 80 points. The S&P 500 and NASDAQ indexes advanced 0.76 percent and 0.51 percent respectively.

The U.S. Treasury Department data showed a migration away from government bonds and notes. The 10-year note yield advanced three basis points (bps) to 1.91 percent (see the benchmark chart below).

Secondary markets were either unchanged or lower. The Federal Home Loan Mortgage Corp (OTC:FMCC) didn’t changed their required net yield (RNY) rates; however, the Federal National Mortgage Association (OTC:FNMA) lowered their 30-year 60-day RNY rate to 2.974 percent.

The London InterBank Offered Rate (LIBOR) was mostly lower. The 6-month LIBOR fell to 0.498 percent and the 1-year LIBOR fell one point to 0.823 percent.

30-Year Fixed Mortgage Rates

The average 30-year fixed mortgage rate advanced less than one point to 3.527 percent (see the mortgage rate chart below). The difference between the 10-year note yield and the 30-year mortgage tightened three bps to 1.617 percent.

The average FHA mortgage rate climbed four bps but the average VA loan rate jumped seven bps.

Citigroup Inc. (NYSE:C) raised their conventional loan rate one basis point to 3.57 percent.

Bank of America Corp (NYSE:BAC) raised their base rate one point to 3.65 percent.

15-Year FRM and 5/1 ARM

The average 15-Year fixed rate mortgage (FRM) advanced one point to 2.971 percent.

Citibank didn’t change their 15-year rate but BAC raised their rate two bps to 2.96 percent.

The average 5-year adjustable rate mortgage (ARM) fell to 3.064 percent.

By: John Waters
Business Reporter

Benchmark Chart:

Thursday 1 Day 5 Day 30 Day 100-Day 100-Day
01/10/13 Benchmark Point Ch. Point Ch. Point Ch. Point Ch. Low
3.250 Prime Rate 0 0 0 0 3.25
3.68 Bond Buyer's 20-yr bond index 0 10 31 -7 3.27
2.86 FHLMC 30 yr 30 days RNY 0 -10 21 -8 1.59
2.9 FHLMC 30 yr 60 days RNY 0 -9 20 -8 1.68
2.948 FNMA 30 yr 30 days RNY 0 -9 16 -21 2.635
2.974 FNMA 30 yr 60 days RNY 0 -11 16 -22 2.68
0.2057 1 Month LIBOR Rate 0 0 0 -3 0.2057
0.305 3 Month LIBOR Rate 0 0 -1 -13 0.305
0.498 6 Month LIBOR Rate 0 0 -3 -22 0.498
0.823 1 Year LIBOR Rate -1 -2 -4 -22 0.823
2 Call Money 0 0 0 0 2
2.68 20-year Bond Yield Rate * 3 -2 32 13 2.29
1.91 10-year Note Yield Rate * 3 -2 28 9 1.57
0.14 1-Year Note Yield Rate * 1 -1 -4 -5 0.13
0.06 3-month Note Yield Rate * 0 -1 -4 -5 0.01
1 11th District Cost of Funds 0 0 -4 -12 1
2.620 Difference 3-mo & 20 yr ** 3 -1 36 18 2.2
1.617 Difference 10yr Note 30yr Loan -3 -2 -12 -37 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
01/10/13 National Average APR* Point Ch. Point Ch. Point Ch. Point Ch. Low
3.527% Average 30 yr fixed 0 -4 16 -28 3.31%
3.982% Average 30 yr FHA 4 -2 10 -32 3.81%
3.817% Average 30-yr VA 7 -4 20 -12 3.60%
2.971% Average 15 year FRM 1 -1 4 -22 2.92%
3.064% Average 5/1 ARM 0 0 0 -8 3.04%
3.932% 30 Yr Fixed Jumbo 0 -7 14 -35 3.78%
3.130% 15 Yr Fixed Jumbo 0 -5 7 -18 2.97%
01/10/13 Citi Financial 1 Day 5 Day 30 Day 100-Day 100-Low
3.57% 30 Year Fixed 1 -9 25 -48 3.32%
2.97% 15 Year Fixed 0 -9 14 -47 2.81%
01/10/13 Bank of America 1 Day Pt 5 Day Pt 30 Day 100-Day 100-Low
3.65% 30-Year Fixed Rate 1 -2 14 -25 3.37%
2.96% 15-Year Fixed-Rate 2 2 4 -18 2.81%
3.01% 5/1 ARM Rate 0 3 -9 -17 2.97%
Certain Areas
3.42% 30-Year Fixed Rate 0 0 -9 -38 3.40%
2.88% 15-Year Fixed Rate 0 0 -8 -28 2.83%
3.01% 7/1 ARM 0 0 -5 -9 3.01%
3.06% 5/1 ARM 0 0 -2 -4 3.02%
* Average includes more banks than listed

Click here for Current Mortgage Rates Today (MORE BANKS)

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