No a little over a month ago you could not get a 3% mortgage. You could get perhaps a 3.625% rate. That same mortgage today with the same points is close to 4.5%. Rates move up instantaneously on days when the benchmark moves but take a few days to retrace when the benchmark goes the other way. Yes this does affect buyers. [/quote]
Less than two months ago, I was looking at refi-ing my jumbo. I could have had 3.625% no costs, was holding out for 3.5%, today, that same loan is 4.99%.
Rates are up about 1.25% in the last two months and just under 1% in the last month.
On a $500K loan, that’s $5000/yr from the low point on rates. The double whammy is the homes have gone up insanely fast. The triple whammy is the points are even steeper to do a buy down and I’m seeing a lot of the 0.25% pts on the base loan amount (volatility buffer by the lenders), which is a trivial, but pertinent, $1000 for people up front.
