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Anthony Lombardo's Blog

By Anthony Lombardo | Mortgage Broker
or Lender in 95605

Interest Rates Take a Beating Today

I try not to blog about rates, but today I’ll make an exception. Rates have taken a serious beating.  As I type this I just got an email about a lender suspending pricing, meaning no locking allowed with this lender until further notice.  They are up in the 0.75% - 1% in additional points today just to get the same rate as yesterday. Or, if the borrower doesn’t want to pay extra points we’re talking 0.375% - 0.5% increase TO THE RATE over yesterday.  I thought this was important to convey right away.

On a positive note, if they remain at these levels, you can expect the turn times for purchase transactions to go down (faster closings).   The difference between a 5.0% and 5.5% interest rate doesn’t seem to be a factor in the purchase market like it is on the refinance side.

I also wanted to blog about this so next year I can look back and laugh about the fact that 5.5% is actually considered a “higher” rate.

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