December 8th, 2010 10:19 AM by BILL WILBANKS
This last month has been a bit of an uphill roller-coaster as far as rates are concerned after months of historically low levels. So, I thought I'd go back and to see what we had available on the thirty year purchase rate a month ago on November 8, 2010. In fact I'd almost forgotten just how recently we last saw the 4%/zero point owner-occupied 30 day purchase rate quote. That's where it was a month ago today. That's worked out to be the biggest jump over a one month timeline this year compared to where we showed it at closing yesterday (4.625%/zero points). That works out to be a 15.63% increase on the 30 rate in a month. Let's make a comparison. If your home was worth $200,000 one month ago and it increased in value by that percent it would now be worth $231,260 today (we could wish...). Or, let's say you paid (hypothetically) $2.75 a gallon for gas a month ago...it would cost you $3.18 a gallon today. Does it mean something to you now? Well, a $200,000 mortgage payment went up by $73.45 based on the rate at closing yesterday. Great little article yesterday. And, if you love "Charts".
How important is it to be wide awake and watching the road right now? Yes property values on the average sales price in most markets are extremely good deals for those that have the need/desire to purchase, but let's not lose the historic rate advantage that we've experienced to go along with it by staying too long at the dance, especially if you are a refinance shopper. Hello! If you're waiting on the last/best sales on Christmas eve...who knows if you will have anything left you "want to buy" or that "fits" your need.
By the way, points went up another 25 bps or so this morning.