Biggest Daily Drop For Mortgage Rates in Over a Month

Whether or not today’s drop in rates is meaningful depends on one’s perspective, but in the context of recent rate movement, it’s definitely noticeable.  The simplest way to think about the improvement is as follows: the average lender is now about an eighth of a percent lower in just over a week.

If we want to be more specific, today’s average top tier 30yr fixed rate is down to 6.87% from 6.96% yesterday, making it the best single day drop since mid April.  The same rate was 7.08% exactly 2 weeks ago.  

Mortgage lenders tend to offer rates in eighth point increments.  When the average was at 7.08%, the prevailing rate quote would have been 7.125%.  Today it would 6.875%, or a 0.25% improvement. This would drop the payment on a $400k mortgage by roughly…