Posted To: Mortgage Rate WatchMortgage rates skyrocketed today, in relative terms. It was the single worst day in nearly 2 years, and among only a few days where effective rates moved more than 0.10%. Typically, mortgage rates are offered in 0.125% increments. We’re able to track “effective rates” by examining the upfront costs associated with any given rate. For instance, a quoted rate might not change from day today despite major changes in upfront costs/credits. At a certain point, the upfront cost change is big enough that it makes more sense to jump up by the aforementioned 0.125% increment. In other words, if you have a loan in process, an effective rate increase of 0.10% means there’s a very good chance that you’re looking at a 0.125% increase in rate today. And if you’re not, you’d instead be seeing this move in…(read more)Forward this article via email: Send a copy of this story to someone you know that may want to read it.
Michael Ayoub, Author NMLS ID 6631