Mortgage rates get more treacherous
That gap has grown significantly over the past couple years.
Why it matters: It's not easy to work out how attractive a mortgage rate is. Two offers from two different companies might have different headline rates, but might also vary on everything from origination fees and closing costs to the amount of money it costs to "buy points" and lower the interest rate paid.
That makes apples-to-apples comparisons extremely difficult.
Follow the money: Americans will collectively pay $11 billion more than they needed to on their mortgages this year, per new research from Tomo Mortgage.
Tomo studied about 1 million loans from more than 1,000 different lenders and normalized each one for rate points, credit, purchase price, and down payment.
The difference between the best and worst rates offered on any given day worked out to $287 per month in mortgage payments on a home that sold for the median sale price.
Between the lines: The gap between the best and worst rates was regularly as low as 0.5 percentage points between 2018 and 2021, but then the Federal Reserve started hiking rates in 2022.
These rate hikes sent mortgage rates soaring, which in turn pushed refinance activity close to zero, a major hit to the profitability of the mortgage sector.
Some lenders responded by offering aggressive rates, Will Begeny from Tomo says, while others found themselves needing to pad their margins.
As a result, the gap between the best and worst rates rose to more than 2 percentage points on some days in the fall of 2022. (It's now closer to 0.88 percentage points.)
Where it stands: Mortgage rates are still high in absolute terms, refinancing activity is low, and the difference between a good rate and a bad rate is much bigger than normal.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
27 minutes ago
- Yahoo
Stock market today: Dow, S&P 500, Nasdaq rise as Fed rate cut bets surge after inflation data
US stocks climbed on Wednesday amid increasing expectations that the Federal Reserve will cut interest rates at its next meeting, following the latest inflation data. The Dow Jones Industrial Average (^DJI) rose nearly 0.5%, while the benchmark S&P 500 (^GSPC) gained 0.4%. The tech-heavy Nasdaq Composite (^IXIC) also climbed roughly 0.5%. Stocks roared on Tuesday after the release of the July CPI report, with the S&P 500 and Nasdaq both touching new records. Though the data showed inflation had ticked up, it increased by less than expected. The results boosted bets the Fed would cut interest rates at its September policy meeting, especially in light of recent warnings signs the labor market is weakening. On Wednesday morning, traders had priced in a nearly 100% chance of a September cut, according to the CME Group. Later this week, investors will get two more snapshots on the state of the economy with the release of the Producer Price Index on Thursday and retail sales data on Friday. In corporate news, Circle (CRCL) fell Wednesday after the company announced it would sell 10 million shares on the heels of its first earnings report since its explosive public debut. Cava (CAVA) shares also dove after the company issued its first annual sales growth target cut. CoreWeave (CRWV) posted losses at the open as the company's operating income guidance fell below expectations as its cost of debt mounts, despite beating revenue estimates on strong demand for AI. Looking ahead, Cisco (CSCO) is Wednesday's earnings headliner after the closing bell. Stocks rise at the open US stocks moved higher on Wednesday after the open as expectations for Fed interest rate cuts rose. The tech-heavy Nasdaq Composite (^IXIC) and the Dow Jones Industrial Average (^DJI) rose more than 0.5%, while the benchmark S&P 500 (^GSPC) gained 0.4%. Within the S&P 500, the Consumer Discretionary Sector (XLY) was up 0.7% , while the Technology Sector (XLK) climbed more than 0.6%. Treasury yields fall after Bessent urges Fed to lower rates US Treasury yields fell on Wednesday as traders increased bets that the Federal Reserve would cut interest rates at its September meeting following a rise in core inflation. At the same time, Treasury Secretary Scott Bessent urged the Fed to cut interest rates by 150 basis points in an interview with Bloomberg on Wednesday, maintaining political pressure on the central bank. The 10-year Treasury yield (^TNX) fell 4 basis points to 4.25%, and the 30-year yield (^TYX) dropped to 4.84%. Tencent earnings, trade truce lift China tech stocks As my colleague Jenny McCall notes below, strong domestic liquidity in China and positive sentiment from the US trade truce have boosted Chinese stocks in recent months. On Wednesday, that rally continued in top Chinese stocks, as recent inflation data boosted hopes for US interest rate cuts and tech companies gained greater clarity around the sale of Nvidia and AMD chips in China. Tencent ( gained 4.7% after the WeChat parent company reported revenue growth of 15%, above estimates. The company is also accelerating AI research to keep up with the competition, which includes Alibaba (BABA), ByteDance, and US companies OpenAI and Anthropic. US-listed shares of e-commerce company Alibaba rose 3.6%, while (JD) added 2%. Baidu (BIDU) climbed 2.5%, and PDD Holdings (PDD) rose 1.9%. VIX fear gauge sinks to lowest level since December The VIX (^VIX) volatility index, a key fear gauge in markets, slipped to 14.49 on Wednesday morning, hitting its lowest level since late December 2024. Despite geopolitical tensions and lingering tariff uncertainty, there are a few reasons why markets are pricing in fewer swings. For one, investors are holding a lot of cash and buying assets at lower prices during sell-offs, according to Bloomberg. Second, the global economy appears to be holding up better than investors expected after President Trump unleashed "Liberation Day" tariffs in April. At that time, the VIX spiked to 52. Bloomberg reports: Read more here. Good morning. Here's what's happening today. Economic data: MBA Mortgage Applications (week ending Aug. 8) Earnings: Brinker International (EAT), Cisco (CSCO), Red Robin (RRGB) Here are some of the biggest stories you may have missed overnight and early this morning: Earnings live: Cava stock tumbles and CoreWeave slides Crypto is having a breakout summer — and bitcoin isn't the reason US leads markets higher as world adapts to tariff policy Dutch Bros eyes expansion as Starbucks battle heats up Investors playing more defense even as stocks climb to new highs US 30-year mortgage rate falls, refi applications surge Market gauges of volatility are fading despite high uncertainty China's $11T stock market stages steady resurgence Bitcoin isn't the reason for crypto's breakout summer The crypto world has had room to run this year amid a series of legislative wins and new financial initiatives. But notably, the big news items don't really involve bitcoin (BTC-USD), Yahoo Finance's Hamza Shaban notes in today's Morning Brief. Hamza writes: Japan's Nikkei hits all-time high The Nikkei 225, the primary index for the Tokyo Stock Exchange, is trading at all-time highs amid optimism that confusion over the recent US-Japan trade agreement is being addressed in addition to the renewed strength in Big Tech. Domestically, Japan's key auto industry is cautiously optimistic that the the positive will outweigh any drag coming from tariffs. "The Nikkei was not able to hit a record until today because chip-related shares and auto shares dragged on the index," Takamasa Ikeda, senior portfolio manager at GCI Asset Management, told Reuters. China's $11 trillion stock market stages steady resurgence Chinese stocks have risen in recent months, helped by strong domestic liquidity and despite a lack of major catalysts. Bloomberg News reports: Read more here. The best points I have heard this morning on CoreWeave CoreWeave (CRWV) was teed up to let down investors last night. And it did on several fronts. First, the company's net loss was much higher than consensus. Second, capital expenditures were a whopping $1 billion higher sequentially. And third, capex may climb another $500 million in the current quarter. While I appreciate the company's revenue backlog of $30.1 billion doubled year over year, the company's mixed results and high debt load are real causes for concern. Hence, the sharp pre-market pullback. Here are two important call outs this morning from DA Davidson analyst Gil Luria: Cava crashing Cava (CAVA) is getting run over premarket to the tune of 23%. Bottom line on this one: When you are valued as a high-growth stock and you don't deliver high growth, your stock will take a beating. Same restaurant sales only rose 2.1%. The company slashed its full-year same-restaurant sales guidance. The earnings call wasn't exactly alarming — the company appears to still be structurally sound. But a slower economy and increased competition is weighing on the brand's results. We heard the same exact tone at Chipotle (CMG) and Starbucks (SBUX) this earnings season. The positive here: Cava is testing salmon for its menu. Who doesn't like salmon in a $15+ salad bowl?! Stocks rise at the open US stocks moved higher on Wednesday after the open as expectations for Fed interest rate cuts rose. The tech-heavy Nasdaq Composite (^IXIC) and the Dow Jones Industrial Average (^DJI) rose more than 0.5%, while the benchmark S&P 500 (^GSPC) gained 0.4%. Within the S&P 500, the Consumer Discretionary Sector (XLY) was up 0.7% , while the Technology Sector (XLK) climbed more than 0.6%. US stocks moved higher on Wednesday after the open as expectations for Fed interest rate cuts rose. The tech-heavy Nasdaq Composite (^IXIC) and the Dow Jones Industrial Average (^DJI) rose more than 0.5%, while the benchmark S&P 500 (^GSPC) gained 0.4%. Within the S&P 500, the Consumer Discretionary Sector (XLY) was up 0.7% , while the Technology Sector (XLK) climbed more than 0.6%. Treasury yields fall after Bessent urges Fed to lower rates US Treasury yields fell on Wednesday as traders increased bets that the Federal Reserve would cut interest rates at its September meeting following a rise in core inflation. At the same time, Treasury Secretary Scott Bessent urged the Fed to cut interest rates by 150 basis points in an interview with Bloomberg on Wednesday, maintaining political pressure on the central bank. The 10-year Treasury yield (^TNX) fell 4 basis points to 4.25%, and the 30-year yield (^TYX) dropped to 4.84%. US Treasury yields fell on Wednesday as traders increased bets that the Federal Reserve would cut interest rates at its September meeting following a rise in core inflation. At the same time, Treasury Secretary Scott Bessent urged the Fed to cut interest rates by 150 basis points in an interview with Bloomberg on Wednesday, maintaining political pressure on the central bank. The 10-year Treasury yield (^TNX) fell 4 basis points to 4.25%, and the 30-year yield (^TYX) dropped to 4.84%. Tencent earnings, trade truce lift China tech stocks As my colleague Jenny McCall notes below, strong domestic liquidity in China and positive sentiment from the US trade truce have boosted Chinese stocks in recent months. On Wednesday, that rally continued in top Chinese stocks, as recent inflation data boosted hopes for US interest rate cuts and tech companies gained greater clarity around the sale of Nvidia and AMD chips in China. Tencent ( gained 4.7% after the WeChat parent company reported revenue growth of 15%, above estimates. The company is also accelerating AI research to keep up with the competition, which includes Alibaba (BABA), ByteDance, and US companies OpenAI and Anthropic. US-listed shares of e-commerce company Alibaba rose 3.6%, while (JD) added 2%. Baidu (BIDU) climbed 2.5%, and PDD Holdings (PDD) rose 1.9%. As my colleague Jenny McCall notes below, strong domestic liquidity in China and positive sentiment from the US trade truce have boosted Chinese stocks in recent months. On Wednesday, that rally continued in top Chinese stocks, as recent inflation data boosted hopes for US interest rate cuts and tech companies gained greater clarity around the sale of Nvidia and AMD chips in China. Tencent ( gained 4.7% after the WeChat parent company reported revenue growth of 15%, above estimates. The company is also accelerating AI research to keep up with the competition, which includes Alibaba (BABA), ByteDance, and US companies OpenAI and Anthropic. US-listed shares of e-commerce company Alibaba rose 3.6%, while (JD) added 2%. Baidu (BIDU) climbed 2.5%, and PDD Holdings (PDD) rose 1.9%. VIX fear gauge sinks to lowest level since December The VIX (^VIX) volatility index, a key fear gauge in markets, slipped to 14.49 on Wednesday morning, hitting its lowest level since late December 2024. Despite geopolitical tensions and lingering tariff uncertainty, there are a few reasons why markets are pricing in fewer swings. For one, investors are holding a lot of cash and buying assets at lower prices during sell-offs, according to Bloomberg. Second, the global economy appears to be holding up better than investors expected after President Trump unleashed "Liberation Day" tariffs in April. At that time, the VIX spiked to 52. Bloomberg reports: Read more here. The VIX (^VIX) volatility index, a key fear gauge in markets, slipped to 14.49 on Wednesday morning, hitting its lowest level since late December 2024. Despite geopolitical tensions and lingering tariff uncertainty, there are a few reasons why markets are pricing in fewer swings. For one, investors are holding a lot of cash and buying assets at lower prices during sell-offs, according to Bloomberg. Second, the global economy appears to be holding up better than investors expected after President Trump unleashed "Liberation Day" tariffs in April. At that time, the VIX spiked to 52. Bloomberg reports: Read more here. Good morning. Here's what's happening today. Economic data: MBA Mortgage Applications (week ending Aug. 8) Earnings: Brinker International (EAT), Cisco (CSCO), Red Robin (RRGB) Here are some of the biggest stories you may have missed overnight and early this morning: Earnings live: Cava stock tumbles and CoreWeave slides Crypto is having a breakout summer — and bitcoin isn't the reason US leads markets higher as world adapts to tariff policy Dutch Bros eyes expansion as Starbucks battle heats up Investors playing more defense even as stocks climb to new highs US 30-year mortgage rate falls, refi applications surge Market gauges of volatility are fading despite high uncertainty China's $11T stock market stages steady resurgence Economic data: MBA Mortgage Applications (week ending Aug. 8) Earnings: Brinker International (EAT), Cisco (CSCO), Red Robin (RRGB) Here are some of the biggest stories you may have missed overnight and early this morning: Earnings live: Cava stock tumbles and CoreWeave slides Crypto is having a breakout summer — and bitcoin isn't the reason US leads markets higher as world adapts to tariff policy Dutch Bros eyes expansion as Starbucks battle heats up Investors playing more defense even as stocks climb to new highs US 30-year mortgage rate falls, refi applications surge Market gauges of volatility are fading despite high uncertainty China's $11T stock market stages steady resurgence Bitcoin isn't the reason for crypto's breakout summer The crypto world has had room to run this year amid a series of legislative wins and new financial initiatives. But notably, the big news items don't really involve bitcoin (BTC-USD), Yahoo Finance's Hamza Shaban notes in today's Morning Brief. Hamza writes: The crypto world has had room to run this year amid a series of legislative wins and new financial initiatives. But notably, the big news items don't really involve bitcoin (BTC-USD), Yahoo Finance's Hamza Shaban notes in today's Morning Brief. Hamza writes: Japan's Nikkei hits all-time high The Nikkei 225, the primary index for the Tokyo Stock Exchange, is trading at all-time highs amid optimism that confusion over the recent US-Japan trade agreement is being addressed in addition to the renewed strength in Big Tech. Domestically, Japan's key auto industry is cautiously optimistic that the the positive will outweigh any drag coming from tariffs. "The Nikkei was not able to hit a record until today because chip-related shares and auto shares dragged on the index," Takamasa Ikeda, senior portfolio manager at GCI Asset Management, told Reuters. The Nikkei 225, the primary index for the Tokyo Stock Exchange, is trading at all-time highs amid optimism that confusion over the recent US-Japan trade agreement is being addressed in addition to the renewed strength in Big Tech. Domestically, Japan's key auto industry is cautiously optimistic that the the positive will outweigh any drag coming from tariffs. "The Nikkei was not able to hit a record until today because chip-related shares and auto shares dragged on the index," Takamasa Ikeda, senior portfolio manager at GCI Asset Management, told Reuters. China's $11 trillion stock market stages steady resurgence Chinese stocks have risen in recent months, helped by strong domestic liquidity and despite a lack of major catalysts. Bloomberg News reports: Read more here. Chinese stocks have risen in recent months, helped by strong domestic liquidity and despite a lack of major catalysts. Bloomberg News reports: Read more here. The best points I have heard this morning on CoreWeave CoreWeave (CRWV) was teed up to let down investors last night. And it did on several fronts. First, the company's net loss was much higher than consensus. Second, capital expenditures were a whopping $1 billion higher sequentially. And third, capex may climb another $500 million in the current quarter. While I appreciate the company's revenue backlog of $30.1 billion doubled year over year, the company's mixed results and high debt load are real causes for concern. Hence, the sharp pre-market pullback. Here are two important call outs this morning from DA Davidson analyst Gil Luria: CoreWeave (CRWV) was teed up to let down investors last night. And it did on several fronts. First, the company's net loss was much higher than consensus. Second, capital expenditures were a whopping $1 billion higher sequentially. And third, capex may climb another $500 million in the current quarter. While I appreciate the company's revenue backlog of $30.1 billion doubled year over year, the company's mixed results and high debt load are real causes for concern. Hence, the sharp pre-market pullback. Here are two important call outs this morning from DA Davidson analyst Gil Luria: Cava crashing Cava (CAVA) is getting run over premarket to the tune of 23%. Bottom line on this one: When you are valued as a high-growth stock and you don't deliver high growth, your stock will take a beating. Same restaurant sales only rose 2.1%. The company slashed its full-year same-restaurant sales guidance. The earnings call wasn't exactly alarming — the company appears to still be structurally sound. But a slower economy and increased competition is weighing on the brand's results. We heard the same exact tone at Chipotle (CMG) and Starbucks (SBUX) this earnings season. The positive here: Cava is testing salmon for its menu. Who doesn't like salmon in a $15+ salad bowl?! Cava (CAVA) is getting run over premarket to the tune of 23%. Bottom line on this one: When you are valued as a high-growth stock and you don't deliver high growth, your stock will take a beating. Same restaurant sales only rose 2.1%. The company slashed its full-year same-restaurant sales guidance. The earnings call wasn't exactly alarming — the company appears to still be structurally sound. But a slower economy and increased competition is weighing on the brand's results. We heard the same exact tone at Chipotle (CMG) and Starbucks (SBUX) this earnings season. The positive here: Cava is testing salmon for its menu. Who doesn't like salmon in a $15+ salad bowl?! Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
USA Today
28 minutes ago
- USA Today
The Daily Money: A housing match made in heaven
Good morning! It's Daniel de Visé with your Daily Money. When Cristiana Perez and Nick Porter began house-hunting in New York State in 2021, they were open-minded about their prospects, but they kept getting priced out. Finally, they had an epiphany. Four years later, the couple are the proud owners of a former church. As church attendance declines and the housing market gets tighter, Perez and Porter's path may hold promise. The wealthiest suburbs of America's biggest cities New York's wealthiest suburb is Scarsdale, a name long linked to affluence. Wellesley, the most well-heeled Boston suburb, is known for academia. Fewer Americans might recognize the name of Hinsdale, Chicago's wealthiest suburb. And some non-Texans might struggle to differentiate between University Park and West University Place, the most affluent suburbs, respectively, of metropolitan Dallas and Houston. Here are the wealthiest suburbs of America's largest cities. 📰 More stories you shouldn't miss 📰 📰 A great read 📰 Finally, here's a popular story from earlier this year that you may have missed. Read it! Share it! Americans currently owe roughly $1.8 trillion in student loan debt. Yet, despite rising costs, going to college is a decision that can give you a high return on your investment. The size of that return, however, can depend on your major. About The Daily Money Each weekday, The Daily Money delivers the best consumer and financial news from USA TODAY, breaking down complex events, providing the TLDR version, and explaining how everything from Fed rate changes to bankruptcies impacts you. Daniel de Visé covers personal finance for USA Today.
Business Wire
28 minutes ago
- Business Wire
Alen Celebrates 20 Years of Innovation and Leadership in Air Purification For Home, School and Work
AUSTIN, Texas--(BUSINESS WIRE)-- Alen, a leader in the air purification industry, today celebrates 20 years of creating best-in-class air purifiers that ensure the health and safety for millions of Americans. The Austin-based company has become a trusted name in clean air solutions since its founding in 2005, recognized by leading industry and scientific experts for its powerful technology, thoughtful design and its deep commitment to healthier living. 'Alen began with one goal in mind. Make clean air simple, effective, and accessible, for people and pets,' said Warburg Lee, Founder and CEO of Alen. 'Since then, both outdoor and indoor air quality have worsened due to wildfires, increased allergens, and viruses, making our mission even more critical. We're a health and wellness company, not just an air purifier company, with a mandate to create healthy living and working environments. From our earliest models to our most recent advanced purifier models, our north star is that we remove 99.9 percent of airborne particulates while operating quietly in the background to protect what matters most.' 20 years of achievements include: Growing from start-up to nationally recognized brand with over 50 team members, availability in all 50 states, serving more than 2 million customers worldwide, and developing the fifth generation of advanced air purifier systems with new products launching in October 2025. Meeting critical third-party standards, including certifications from ENERGY STAR, Quiet Mark, SleepScore Labs, and the Asthma and Allergy Friendly Program. Products are tested to remove up to 99.9 percent of airborne particles down to 0.1 microns. Sought-after by national retailers including Lowe's and Amazon to carry Alen products because they are a trusted brand for homes, schools, and businesses across the country. Continued excellence in technology, developing proprietary technology, industry-first features, and responsive design with intelligent sensors and proprietary airID technology that detects and responds to real-time air quality changes, automatically adjusting to remove pollutants like dust, smoke, and chemicals for cleaner, healthier air. Day-one pursuit of design to fit the aesthetics of modern living. Alen purifiers blend seamlessly into bedrooms, offices, classrooms, and large commercial spaces with multiple sizes, ultra-quiet performance, and customizable designer panels. Alen's mission to improve indoor air became a national movement for wellness. Alen continues to lead with purpose, innovation, and a long-standing commitment to help people breathe better and live healthier. Alen is preparing to introduce new models later this year, building on its reputation for premium air purification and breakthrough technology. These upcoming releases will reinforce its position as a leader in clean air solutions. Alen is poised to deliver greater impact across both retail and business-to-business markets, backed by ongoing innovation, supply chain strength, and strategic commercial partnerships. To explore Alen's full range of air purification solutions, visit About Alen Alen is an Austin-based innovator of high-performance air purifiers, committed to creating healthier indoor environments through advanced, scientifically validated technology. Alen's purifiers use True HEPA filters and are independently certified by Quiet Mark, the Asthma & Allergy Friendly® Certification Program, SleepScore Labs, and ENERGY STAR® for delivering best-in-class air purification, energy efficiency, ultra-quiet operation, and improved sleep quality. Alen's mission to enhance quality of life in homes, workplaces, and shared spaces is driven by the belief that wellness begins with pure air. Alen empowers individuals and families to lead healthier lives with cleaner, safer air and greater peace of mind through proprietary features like airID smart sensor technology and a commitment to lifetime reliability.
