Short version is the market thinks rates will drop, so the rate decrease you get for paying points up front is much much higher than normal. The article says the break-even point on a point is only 17 months right now. It was always more like 50-60 months whenever I applied before, too long so I always did 0 or negative points.
So…BULLISH. 5% average rate with the ability to pay a small fee to turn it into a 4.375% is a better environment for buyers than 5% without this option.
