February 11th, 2011 12:44 PM by BILL WILBANKS
After the 10yr bond closed yesterday at 3.7022 (had been 3 bps higher ) it sits at 3.6419 at 12:20 this afternoon. We have a major lender that dropped their conventional fixed rate 30 year and another lender on FHA this morning to below 5% on the true zero point quote here to sit currently at 4.875%. Though few lenders have followed suit at the moment, it is available for a well qualified borrower depending on credit score and LTV at the moment. It's taking advantage of such fleeting dips that can make a difference to you though an 0.125% (1/8) percentage in rate has a relative minor impact on the average payment.
What does minor impact mean? Take a $100,000 mortgage for example. The payment difference of a $100,000 at 5% vs. 4.875% comes to $7.67 each month (put another way, that's $0.0767 per thousand financed). That's hardly enough to move the mark on whether a buyer/borrower jumps in or not. So don't let the day-to-day market fluctuations and lastest news report drive you crazy folks. Just don't go to sleep if you are seriously in the market for a purchase or refinance right now. The trend has definitely been moving up so don't wait too long. The back side "positive" in the mix is the average sales prices are bargain basement.