Yesterday was one of the worst losses I've seen in my 10 years of lending experience. We went through three re-prices and mortgage backed securities lost over 150 basis points. Ouch! But what does this really mean if I'm still looking to purchase my home? How does this affect my payment? Hopefully we all can take a step back and gain some perspective. Rates are still at historically low levels. Most lenders are executing at 4.25% for a thirty year fixed mortgage. For a $350,000.00 loan amount, going from 3.75% to 4.25% changes my payment by $100.88. What's important for buyers right now (and this is true in all markets) is to be working with a mortgage professional who will advise you on what's happening in the market, keep you informed, and let you know about all the products that are available that can help you get into your next home.
Let's all keep our wits about us and not hit the panic button.
Happy hunting out there!
Dave
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