A basis point (bps) is a unit that is equal to 1/100th of 1%, in other words one basis point is equal to 0.01%, similarly a 1% change is equal to a 100 basis point change.

In real estate, basis points are often used to measure fees or changes in interest rates which often are less than 1%.

Ex. If interest rates increase 50 bps from their current low of 3.25% the new interest rate would be 3.75%

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