“Mortgage rates moved just slightly lower today, bringing them to the best levels in over a month for the 2nd time this week. While that sounds somewhat impressive, day-over-day movement has been very small and the overall range has been very narrow during that time. For most prospective borrowers, a scenario quoted last week would be at the same rate this week, but with lower upfront costs. Indeed, it’s possible that a few quotes have moved .125% lower over that time, but upfront costs would likely be somewhat higher.
Here’s how the info above would break down specifically. Borrowers being quoted the same rate vs last week are looking at an average upfront cost savings of roughly 0.3%, or $300 for every $100,000 borrowed. Clients being quoted the next rate lower (in 0.125% increments) are looking at average upfront cost increase of roughly the same amount. That $300 in upfront cost is worth roughly 7 bucks a month….”
By Matthew Graham
Mortgage News Daily