June 19th, 2013 7:10 PM by BILL WILBANKS
We saw four (4) rate sheets from our lowest priced fixed rate lender in the market today. That's three price increases in one day. Why? We saw a 0.875% point increase in total fixed rate points by the end of the day after Bernanke spoke today. So a well qualified borrower on a 30 year fixed rate purchase or rate and term refinance can now expect us to offer a 4.00% fixed rate basement at the moment on a conforming loan amount. Many companies have been running 4.125% to 4.25% (we'd been offering 3.875%/now 4.00%) for several days before today's increases. I would expect the average street quote now to be 4.25% to 4.375% overall in the market at the moment. So shop around.
But hey! An 0.125% (1/8) increase in rate on a $200,000 loan amount only bumps the payment by just under $15.00 a month. So don't panic. Just no way to know where the bottom is when it settles over the next few days. However, if you or someone you know are considering a purchase or refinance...don't waste too much time. And if you have any higher interest debt that you can wrap into a refinance now is the time to do it. This isn't a time to be indecisive. I want to save you money...but you have to take the first step.
Bill Wilbanks