Rates poised to hit the lowest point in over a month

The 30-year fixed rate mortgage dropped 45 basis points to 5.50% while the 15-year moved back into 4s territory, dropping 46 basis points to 4.84%.

current outlook:

If interest rates continue this trend for another two days, they’ll be at the lowest levels we’ve seen in over a month. However, this is contingent on there being no surprises in today’s ISM’s Non-Manufacturing PMI or in the minutes from the most recent Fed meeting. Meanwhile, at these first signs of rates coming down, refinance applications have slowly made a comeback. According to the MBA, refinance applications increased 2% week-over-week (but are still 80% below where they were the same week in 2021). The share of refinance applications also grew from 29.7% of total applications to 30.3%. Our advice if you’re applying this season is to 1) shop around and 2) take advantage of discount points. While in normal times, paying a single discount point might bring down your rate by 0.25%, certain borrowers could see their rate drop by as much as 0.5% from purchasing a discount point.

Rates poised to hit the lowest point in over a month

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