CFPB report shows tie between rising mortgage rates, uptick in discount points

High mortgage rates are causing borrowers to pay more upfront for discount points, according to the Consumer Financial Protection Bureau’s findings in a new report. Using quarterly Home Mortgage Disclosure Act data dating back to 2019, the bureau found the percentage of homebuyers paying for discount points in 2023 was nearly double that of 2021 and was most pronounced among borrowers with lower credit scores.