A rate update from Julian Hebron at RPM Mortgage:
Zero-points rates on conforming loans up to $417k and super-conforming loans up to $625,500 have improved to start this week as stocks have sold off and mortgage bonds have rallied—when bond prices rise in a rally, yields (or rates) drop. With the government participating in mortgage bond markets, lenders are pricing more conservatively than market levels might suggest because it’s harder than ever to predict which way markets will move. So we continue to see favorable terms on points: one point gets .625% to .875% lower in rate, so borrowers break even on a one-point buydown in 12-18 months.
And rough 30-year rates with said single point:
Conforming – 4.875% (5.09% APR)
Super-Conforming – 5.375% (5.52% APR)
Jumbo – 6.625 % (6.83% APR)