December 10th, 2010 6:25 PM by BILL WILBANKS
Well the 10 year ended the week 31 bps higher than where it started and rates are there to prove it. We sat at 3.3248% at 5:30 this evening and those lenders that had not bumped their points earlier in the afternoon for the 2nd time today did so at or right after close on the market today by another 0.25% +/-. So we are now firmly planted in the 4.75% level on the 30 year fixed zero point purchase quote in the market at the end of the week and the buydown to even 0.125% lower in rate tonight costing you at least 0.50% to 0.75% point depending on the lender so questionable to the advantage on doing it right now. BUT DON"T LOSE TRACK OF REALITY. These are still historically phenomenal rates and at current market home prices, do you really need to get lost in the fact that they are currently up from recent record low rate levels? Look at the big picture. It's a great time to buy and if your rate can be dropped by 0.75% to 1.00% or your term reduced to 15 years from a 30 year loan on a refinance what can be holding you up? Hindsight is always 20/20. It takes foresight to realize reality and take advantage of it. Hope everyone has a great weekend and be safe.