Current Mortgage Rates Today

Current Mortgage Rates Today

October 18, 2012 - 2:58am.
15-Year FRM Graph

(Best Syndication News) Mortgage interest rates increased today as lenders made adjustments following an upswing in some of the benchmarks (see the mortgage rate charts below). Bank of America, Wells Fargo, and Citibank raised their loan products as secondary lenders reacted to the shift in capital markets.
Benchmarks

Stock indexes were mixed throughout the day as investors responded to positive economic news. There were 872,000 housing starts in September, according to the U.S. Department of Commerce. Analysts were expecting only 765,000 privately-owned housing starts. In addition, the government revised their August figure upward to 785,000.

The Commerce Department also said there were 894,000 building permits issued last month. Analysts expected only 815,000. The August figure was revised lower to 801,000.

The Mortgage Bankers Association (MBA) said that loan volume decreased 4.2 percent last week. This follows a decrease of 1.2 percent the previous week.

The increase in housing starts and permits was welcome news for home builder stocks. KB Home (NYSE:KBH) advanced nearly nine percent during the trading day. In the after hours KBH fell 0.2 percent. The Ryland Group, Inc. (NYSE:RYL) was another beneficiary as their stock price advanced four percent during Wednesday’s session.

The Dow Jones Industrial Average (DJIA) index spent most of the day in negative territory. By the closing bell, the DJIA gained just 5 points. This was the fourth-straight day of advances. The NASDAQ and S&P 500 were higher throughout most of the session.

Money continued to flow away from the government safe-havens. Data released by the U.S. Department of Treasury indicated that bond and note prices dropped allowing yields to increase. The 10-year note yield, a common benchmark for the 30-year fixed rate mortgage (FRM), climbed eight basis points (bps) to 1.83 percent (see the benchmark chart below).

Secondary lenders lowered their required net yield (RNY) rates. The Federal Home Loan Mortgage Corp (OTC:FMCC) raised their 30-year 60-day RNY rate 12 bps to 2.81 percent. The Federal National Mortgage Association (OTC:FNMA) raised their RNY rate one basis point to 2.78 percent.

The London InterBank Offered Rate has been lower 60-straight days. The 6-month LIBOR fell one point to 0.5704 percent and the 1-year LIBOR fell one point to 0.9055 percent.
30-Year Fixed Mortgage Rates

The average 30-year fixed mortgage rate advanced five bps to 3.491 percent (see the mortgage rate chart below). The difference between the 10-year note yield and the 30-year mortgage rate tightened three bps to 1.661 percent.

The average 30-year FHA loan rate climbed six bps to 3.999 percent and the average VA loan rate rose five bps to 3.821 percent.

Wells Fargo & Company (NYSE:WFC) increased their conventional loan rate 13 bps to 3.93 percent. The lender also raised their FHA loan rate 14 bps.

Citigroup Inc. (NYSE:C) raised their conventional 30-year rate 13 bps to 3.79 percent.
15-Year FRM and 5/1 ARM

The average 15-year fixed rate mortgage advanced five bps to 3.001 percent.

WFC raised their 15-year rate 13 bps to 3.18 percent. Citigroup raised their 15-year rate 13 bps to 3.28 percent.

The average 5-year adjustable rate mortgage (ARM) advanced three bps to 3.092 percent.
Jumbo Loans

The average 30-year fixed rate mortgage fell four bps to 4.060 percent; however JPM raised their rate 13 bps to 4.26 percent.