What are basis points?
The Bankrate.com financial term of the day is: "Basis Point"
You'll notice that mortgage rates are typically given in numbers that go two digits beyond the decimal point. The movement of those rates is expressed in terms of basis points. One basis point is equal to one one-hundredth of a percentage point. So when an average rate, for example, rises from 4.51 percent to 4.52's a difference of 1 basis point.
Mortgage rates move up and down in a kind of increment called a basis point, which is the same as 0.01 percent.
To find a great rate on a home loan, visit the Mortgage section at Bankrate.com.