If you find mortgage and bond pricing interesting, this is a great article:
https://www.mortgagenewsdaily.com/markets/mortgage-rates-07292022
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.
The employment report came out this morning and it was pretty strong. In a strange twist, the stock market is dropping because strong employment means the economy isn’t on the verge of collapse, thus interest rates will have to be higher to slow inflation. Meanwhile rates on the 10yr jump this morning as well. It will be interesting to see where Mortgage News Daily ends up reporting today’s mortgage rate. Strange times indeed!