February 26th, 2013 8:58 AM by BILL WILBANKS
After riding for a couple weeks now with a 30 year fixed firmly at the highest rate this year at the 3.50% level with zero point cost and/or minor rebates, yesterday afternoon saw a 0.25% to 0.375% point drop by end of day. That put our offering back in the 3.375% level for a well qualified customer. This morning the 10 year sits at 1.87% after starting yesterday morning at 1.97%. Based on the typical buydown points yesterday at close, I don't believe we'll see another 0.125% rate drop today unless the bottom falls out of something. We'd need to double the points drop we saw yesterday to do that. But, the 3.375% level is near the lowest seen this year and the 5 plus decade basement level at 3.25%. If this holds for a while, you fence sitters and those just kicking the thought bucket around might want to pay attention. Bernanke speak yet to come today.
Hey...starting to hear of home bidders who offered more than the asking price losing out to "better" offers. Be still my heart...does this smack of an actual or can we remotely dream...sustained...upward equity move on my home and yours if you want to buy up? How long can we expect to continue to have record low prices and rates? Time will tell...