Credit and Loans

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.

Mortgage Rates Continue to Rise After Week of Declines

Graph of 10-year Notes

(Best Syndication News) Mortgage rates jumped again today after a drop last week in conventional lending rates (see the mortgage rate charts below). Some of the benchmarks rose after a lift in stocks and gold.

The average 30-year fixed conventional rate mortgage jumped six basis points (bps) to 4.278 percent (see the mortgage rate table below). Wells Fargo & Co (NYSE:WFC) raised their rate to 4.67 percent and their 30-year Fixed FHA rate 14 bps to 5.57 percent. Citigroup Inc (NYSE:C) raised their conventional rate 12 bps to 4.68 percent.

Mortgage Rates Trend Lower After 30-Day Upswing

Graph of 10-year Notes

(Best Syndication News) Mortgage rates trended lower this week as the benchmarks used by banks shifted in the negative direction (see the mortgage rate charts below). The shift is counter to a 100-day upward movement by the major lenders.

The average 30-year fixed rate mortgage fell 11 basis points (bps) last week, however over the last 100-days the rate is still 59 basis points (bps) higher (see the mortgage rate charts below).

Fannie Mae, the Federal National Mortgage Association (OTCBB:FNMA), lowered their RNY rate three bps on Friday. The secondary lender’s 100-day trend is still much higher (see the benchmark chart below).

What Will Replace Fannie Mae and Freddie Mac?

Graph of 10-year Notes

(Best Syndication News) The President proposed doing away with the two-big government sponsored enterprises (GSE), replacing them with private capital and an increased role for government.

Part of the government role will be to provide “incentives” for financial institutions to provide “high quality loans and products.” The role of the Federal Housing Administration (FHA) will also continue. FHA will guarantee continue to guarantee qualified bank loans. The administration also expects to strengthen the lending market with legislative proposals.

Current Mortgage Rates – VA and FHA Loan Rates Increase

Graph of 10-year Notes

(Best Syndication News) Conventional mortgage rates slumped today after Freddie Mac made drastic changes in their required net yield (RNY) rates (see the mortgage rate charts below). The London InterBank Offered Rate (LIBOR) dropped while the 10-year note yield jumped four basis points (bps).

Although the average mortgage rate fell this week, the monthly and 100-day trend has been much higher. Higher home prices and a faster pace in home sales is producing a seller’s market in the United States. This could change if interest rates continue to rise – however the Federal Reserve has not signaled any changed in their targets.

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