The market saw some good news today.  Housing sales went up although home prices were down slightly in February.  The stock market is up over 200 points, mid-day, based on this and Bear Stearns news.  So, today is a good day. 

Apparently the second good day on row. Yippee!What does this mean for interest rates?  After 2PM today, notices were sent out from the major lenders that rates will cost a ¼ point more.  What does this mean?  If a 30 year fixed rate loan was at 5.75% this morning, it will now cost a ¼ point fee to get 5.75%.  On a 100,000 dollar loan, this is $250.

 If you are using a mortgage broker, they should be able to absorb this increase and you should get the same rate at no cost.  If you are using a lender or a broker, do not let them tell you it will cost a nickel more and tell them you will not pay the increase.  If you have to lock in today, then negotiate the increase.  If you do not have to lock in today- don’t.  I am not locking in anybody today.  If I did, I would be eating the quarter point.  No worry!!

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