Mortgage Rates Trending Lower Again after a Monthly Upswing

Graph of 10-year Notes

(Best Syndication News) Mortgage interest rates dropped three days in a row after a long-term upward trend (see the mortgage rate and benchmark charts below). Shaky investor confidence as the Federal Reserve considers tapering down their easing programs has pushed up the price of government securities driving yields lower.

The average 30-year conventional rate fell two basis points (bps) on Tuesday (see the mortgage rate chart below). Over the last 5-day period the average rate has fallen 10 bps; however the 30-day and 100-day trends were higher.

Wells Fargo & Co (NYSE:WFC) held their conventional rates unchanged, but did lower their 30-year fixed rate mortgage 13 basis points in certain areas.

Bank of America Corp (NYSE:BAC) lowered their conventional rate three bps. Citigroup Inc (NYSE:C) lowered their rate three basis points but also lowered their 15-year mortgage rate seven basis points.

Soon after the economic crisis began, the Federal Reserve took swift aggressive action to prevent a decline in economic conditions. A series of quantitative easing programs and asset purchse programs (primarily long-term U.S. Treasuries) have pushed stock prices higher. The hint of a pullback has had the opposite effect.

The alternative to purchasing stocks has been U.S. government bonds, notes, and bills. A shift in Fed policy could push money back into these safe-havens. Increased competition will drive prices higher but yields lower. The 10-year note yield fell seven bps to 2.72 percent Tuesday (see the benchmark chart below).

Adjustable rate mortgages were also lower. The average 5-year adjustable rate mortgage (ARM) dropped one basis point to 3.251 percent. VA and FHA loan rates are also trending lower.

The average 30-year jumbo mortgage rate fell seven bps to 4.604 percent. See the mortgage rate chart below for more details.

By: John Waters
Business Reporter

Mortgage Rate Chart:

Best Syndication News Mortgage Survey
Tuesday 1 Day 5 Day 30 Day 100-Day 100-Day
08/27/13 National Average APR* Point Ch. Point Ch. Point Ch. Point Ch. Low
4.330% Average 30 yr fixed -2 -10 72 79 3.45%
4.899% Average 30 yr FHA -4 -15 73 98 3.69%
4.212% Average 30-yr VA -9 -19 38 56 3.56%
3.494% Average 15 year FRM -3 -9 53 57 2.80%
3.251% Average 5/1 ARM -1 0 35 31 2.88%
4.604% 30 Yr Fixed Jumbo -7 -5 76 80 3.76%
3.820% 15 Yr Fixed Jumbo -6 -9 61 68 2.94%
08/27/13 Wells Fargo 1 Day 5 Day 30 Day 100-Day 100-Day
4.80% 30-Year Fixed 0 -13 88 114 3.54%
5.89% 30-Year Fixed FHA 0 -25 116 157 4.32%
3.92% 15-Year Fixed 0 -25 76 101 2.79%
3.21% 5-Year ARM 0 0 43 35 2.78%
4.07% 5-Year ARM FHA 0 -6 113 113 2.94%
Certain areas
4.76% 30-Year Fixed -13 -25 76 101 3.62%
5.85% 30-Year Fixed FHA -25 -38 101 157 4.28%
3.21% 5-Year ARM -4 -4 39 31 2.82%
Jumbo Loans
4.49% 30-Year Fixed -13 -13 50 76 3.73%
2.89% 5-Year ARM 0 -13 4 5 2.85%
08/27/13 Citi Financial 1 Day 5 Day 30 Day 100-Day 100-Low
4.69% 30 Year Fixed -3 -16 87 102 3.55%
3.84% 15 Year Fixed -7 -22 68 92 2.81%
08/27/13 Chase 1 Day Pt 5 Day Pt 30 Day 100-Day 100-Low
4.63% 30-Year Fixed Rate 0 -13 86 94 3.49%
4.50% 20-Year Fixed Rate 0 -13 84 91 3.30%
3.75% 15-Year Fixed Rate -13 -13 62 71 2.90%
5.13% 7/1 ARM -13 -25 217 218 2.89%
4.25% 5/1 ARM -12 -12 135 134 2.89%
08/27/13 Bank of America 1 Day Pt 5 Day Pt 30 Day 100-Day 100-Low
4.71% 30-Year Fixed Rate -3 -22 94 104 3.43%
3.87% 15-Year Fixed-Rate -3 -26 69 84 2.76%
3.43% 5/1 ARM Rate 0 0 51 50 2.89%
* Average includes more banks than listed

Benchmark Chart:

Tuesday 1 Day 5 Day 30 Day 100-Day 100-Day
08/27/13 Benchmark Point Ch. Point Ch. Point Ch. Point Ch. Low
3.250 Prime Rate 0 0 0 0 3.25
4.91 Bond Buyer's 20-yr bond index 11 11 36 92 3.61
4.117 FNMA 30 yr 30 days RNY -7 -9 16 99 2.914
4.165 FNMA 30 yr 60 days RNY -7 -9 17 100 2.941
0.18256 1 Month LIBOR Rate 0 0 -1 -2 0.122
0.2594 3 Month LIBOR Rate 0 0 -1 -2 0.21
0.3935 6 Month LIBOR Rate 0 0 -1 -5 0.32
0.6681 1 Year LIBOR Rate -1 0 -2 -5 0.503
2 Call Money 0 0 0 0 2
3.45 20-year Note Yield Rate * -7 -19 18 85 2.44
2.72 10-year Note Yield Rate * -7 -15 20 94 1.66
0.12 1-year Note Yield Rate * -1 -2 1 -1 0.1
0.05 3-month Note Yield Rate * 1 1 2 -2 0.02
0.95% 11th District Cost of Funds 0 0 0 0 0.00951
3.400 Difference 3-mo & 20 yr ** -8 -20 16 87 2.38
1.610 Difference 10yr Note 30yr Loan 5 5 52 -15 0.879408
* Treasury Yields - DAILY
** Pos change - economy to improve soon (probit model)

Last five days:

08/21/13 08/22/13 08/23/13 08/26/13 08/27/13 Basis Point Changes
1 2 -4 -6 -2 Average 30 yr fixed
3 0 -3 -4 -3 Average 15 year FRM
2 1 1 -2 -1 Average 5/1 ARM
3 7 -2 -3 -7 30 Yr Fixed Jumbo
5 5 -4 -4 -6 15 Yr Fixed Jumbo
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