Current Market Rates

By ft Editorial Staff • Mar 24th, 2011 • Category: Charts

91-Day Treasury Bill – Average Auction Rate

 

Chart updated 3/24/11

Week Ending
3/25/11
0.10%
Month Ago
2/25/11
0.13%
Year Ago
3/24/10
0.16
 This rate determines the minimum interest rate the seller must impute in a delayed §1031 transaction and report when not receiving interest on §1031 monies held by a facilitator/accomodator and sets the amount of the ordinary income the facilitator/accommodator must report. [See first tuesday article, Interest imputed on §1031 monies delivered to facilitators.]

3-Month Treasury Bill

 

Chart updated 3/4/11

Month
3/2011
0.14%
Month Ago
2/2011
0.15%
Year Ago
3/2010
0.18%
 The 3-Month Treasury Bill is the rate managed by the Federal Reserve through the Fed Funds Rate as the base price of borrowing money in the short-term. It is used in determining the yield spread, which predicts the likelihood of a recession one year forward. [For more information on the yield spread, see the March 2010 first tuesday Article, Using the yield spread to forecast recessions.]

10-Year T-Bonds – Average Market Yield

 

Chart updated 3/24/11

Current
3/24/11
3.34%
Month ago
2/23/11
3.49%
Year ago
3/26/10
3.84%
This rate is a leading indicator of the direction of future FHLMC rates, which historically run around 1.4% higher during a stable money market. The rate is comprised of the level of worldwide demand for the dollar and anticipated future domestic inflation.

Average 30-Year Conventional Commitment Rate

 

Chart updated 3/24/11

Current
3/24/11
4.81
Month ago
2/24/11
4.95%
Year ago
3/25/10
5.01%
The average 30-year commitment rate is the rate at which a lender commits to lend mortgage money in the United States-West as reported by FHLMC. More information is available here.

 

Chart updated 3/24/11

Current
3/24/11
4.04%
Month ago
2/24/11
4.22%
Year ago
3/25/10
4.38%
 The average 15-year commitment rate is the rate at which a lender commits to lend mortgage money in the United States-West as reported by FHLMC. More information is available here.

 

Chart updated 3/4/11

Month of
2/2011
0.16%
Month Ago
1/2011
0.15%
Year Ago
2/2010
.17%
The ARM interest rate equals the 6-month T-Bill rate (at time of adjustment or an average of several prior rates), plus the lender’s profit margin.

Treasury Securities Average Yield — 1-Year Constant Maturity

Chart updated 3/4/11
Month of
2/2011
0.31%

 

Month Ago
1/2011
0.32%
Year Ago
2/2010
0.35%
 This index is one of several indexes used by lenders as stated in their ARM note to periodically adjust the note’s interest rate. The ARM interest rate equals T-Bill yield, plus the lender’s profit margin. The index is an average of T-Bill yields with maturities adjusted to one year.

12-Month Treasury Average

 

Chart updated 3/4/11

Month of
2/2011
0.31%
Month Ago
1/2011
0.31%
Year Ago
2/2010
.44%
This index is one of several indexes used by lenders as stated in their ARM note to periodically adjust the note’s interest rate. This figure is an average of the one-year T-Bill rates for the past 12 months.The ARM interest rate equals the 12 Month Treasury Average yield plus the lender’s profit margin.

Cost of Funds Index (11th FHLBB District)

 

Chart updated 3/4/11

Month of
2/2011
1.48%
Month of
1/2011
1.57%
Month of
2/2010
1.83%
 This index is one of several indexes used by lenders as stated in their ARM note to periodically adjust the note’s interest rate. The ARM interest rate equals Cost-of-Funds, plus the lender’s profit margin. Current index reflects the cost of funds two months’ prior in the United States-West. More information is available here.

 

Chart updated 3/4/11

Average 15-Year
3/3/11
4.15%
Average 30-Year
3/3/11
4.87%
12-Month Treasury Avg
2/24/11
0.307%
 The average 15- and 30-year conventional commitment rates are the rates at which a lender commits to lend mortgage money in the United States-West for the duration of the life of each respective loan as reported by FHLMC. More information is available here. The 12 Month Treasure Average is an average of the one-year T-Bill rates for the past 12 months.The ARM interest rate equals the 12 Month Treasury Average yield plus the lender’s profit margin. Numbers are reported with a one-month delay to accurately resent 12 Month Avg.

London Inter-Bank Offered Rate

 

Chart updated 3/4/11

1 Month
0.26%
6 Month
0.46%
1 Year
.79%
This index is one of several indexes used by lenders as stated in their ARM note to periodically adjust the note’s interest rate. The ARM interest rate equals the LIBOR rate plus the lender’s profit margin. The rate is set by the banks in London, England.

Prime Rate

 

Chart updated 3/4/11

Month of
2/2011
3.25%
Month Ago
1/2011
3.25%
Year Ago
2/2010
3.25%
 This index is one of several indexes used by lenders as stated in their ARM note to periodically adjust the note’s interest rate. The prime rate is used by banks to price short-term business loans and set ARMs tied to the prime rate. Historically the rate is 3% over the Federal Funds Target Rate.

Discount Rate – Federal Reserve Bank of San Francisco

 

Chart updated 3/4/11

Month of
2/2011
0.75%
Month Ago
1/2011
0.75%
Year Ago
2/2010
0.50%
 Usury law limits the annual interest yield on nonexempt loans to 10%, or the discount rate plus 5%, whichever is greater. The discount rate is charged on loans made by the the Federal Reserve Bank to its members. More information is available here.

Applicable Federal Rates

 

Chart updated 3/4/11

Short (to 3 years)
March 2011
0.77%
Medium (3 to 9 years)
March 2011
2.16%
Long (9+ years)
March 2011
4.46%
Determines minimum interest yield reportable on carryback financing. The AFR category is determined by the carryback due date. *Rates are for monthly payments. Click here for AFRs on other payment periods.

San Francisco Los Angeles
December 2009
689.374
January 2010
663.598
December 2010
699.882
January 2011
675.541
Annual Change
1.5%
Annual Change 1.34%
San Diego
Second Half 2009
823.872
Second  Half 2010
834.120
Annual Change
1.49%

The periodic percentage change in the CPI is a measure of domestic inflation, and is used to measure price movements among goods and services associated with the consumer’s cost of living. The CPI is one of the factors used to adjust monthly rents in non-residential leases. More information about the CPI is available here. [For more information on the CPI, see the November 2009 first tuesday article, Calculating Owner-Occupied Housing in CPI. first tuesday students can also see Chapter 44 of the textbook Property Management, “Rent Increases and the CPI,” available on the Forms-on-CD 4.2 and Online Library. (Not a first tuesday student? Click here and enroll in any course for one-year’s access to all books and materials published by first tuesday)]

Rate Analysis for Private Lender Section 32 Reg Z Loans

Last updated 3/4/11

Monthly*

6-Month

1-Year

2-Year

3-Year

5-Year

7-Year

February 2011

0.16%

0.27%

0.73%

1.23%

2.18%

2.86%

On junior trust deed loans a margin of 5 – 8% points is added to the Index Figure (Cost-of-Funds Rate) for the maturity date of a Treasury bill equal in length to the pay off date of the loan to set the Section 32 threshold for term limitations. With this in mind, if the percentage of the total loan amount represented by points and fees is greater than the applicable Federal Securities Rate plus ten percentage points, additional disclosures, limitations and prohibitions are triggered by Reg Z Section 32. [For more information, please reference the June 2008 first tuesday articles, Regulation Z Controlled Lending and Brokering Cal-32 High-Cost Loans. first tuesday students can also access  first tuesday Form 223-1, Points and Fees Test, and first tuesday Form 223-1, Supplemental Truth-in-Lending Section 32 Disclosure, available on the Forms-on-CD 4.2 and Online Library. (Not a first tuesday student? Click here and enroll in any course for one-year’s access to all books and materials published by first tuesday)]

*Selection of rate:

The rate for each month is set as the rate of the Treasury Security for each maturity date (term) on the 15th of the prior month as provided by the Treasury’s statistical release H. 15.

*Rate information gathered from:

The Federal Reserve Board

Federal Reserve Bank of San Francisco

Federal Reserve Bank of St. Louis

The Bureau of Labor Statistics

The Federal Home Loan Bank of San Francisco

Freddie Mac

Fannie Mae

U.S. Department of Labor

U.S. Department of the Treasury

Internal Revenue Service

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