Posted To: Mortgage Rate Watch

Mortgage rates moved lower at a decent pace today for the 2nd day in a row. The average lender is still offering the same “note rate” compared to yesterday, but the costs associated with that rate are lower. In other words, “effective rates” (a synthetic rate that accounts for changes in upfront costs, thus allowing us to observe smaller day-to-day changes in the form of an interest rate) are lower. Why distinguish between effective rates and note rates? Simply put, note rates don’t tend to move enough to be worth tracking each day (most lenders offer rates in 0.125% increments). During more stable market conditions, we can go weeks or even months at a time without a change in note rates. Effective rates, however, are almost always higher or lower by at least 0.01%. So where does this leave…(read more)

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Published On: March 23, 2021 / Categories: Mortgage News /

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