I try not to blog about rates, but today Iâ€™ll make an exception. Rates have taken a serious beating.Â As I type this I just got an email about a lender suspending pricing, meaning no locking allowed with this lender until further notice.Â They are up in the 0.75% - 1% in additional points today just to get the same rate as yesterday. Or, if the borrower doesnâ€™t want to pay extra points weâ€™re talking 0.375% - 0.5% increase TO THE RATE over yesterday.Â 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).Â Â The difference between a 5.0% and 5.5% interest rate doesnâ€™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 â€œhigherâ€ rate.