ABBA First Mortgage News

This past week in review

February 6th, 2016

Rates on home loans continued to fall this past week; however, this data was released before the jobs report on Friday. Freddie Mac announced that, for the week ending February 4, 30-year fixed rates fell to 3.72% from 3.79% the week before. The average for 15-year loans decreased to 3.01%. The average for five-year adjustables also decreased to 2.85%. A year ago, 30-year fixed rates were at 3.59%, slightly lower than today’s levels. “Market volatility — and the associated flight to quality — continued unabated this week. The yield on the 10-year Treasury dropped another 15 basis points, and the 30-year rate fell 7 basis points as well, to 3.72 percent. Both the Treasury yield and rates on home loans now are in the neighborhood of early-2015 lows. These declines are not what the market anticipated when the Fed raised the Federal funds rate in December. For now, though, sub-4-percent rates are providing a longer-than-expected opportunity for homeowners to refinance.” Note: As of January 1, Freddie Mac is no longer providing survey data for 1-year adjustables. Rates indicated do not include fees and points and are provided for evidence of trends only. They should not be used for comparison purposes.
ABBA First Mortgage remains to be one of the most competitive compnies in the industry.  Please call for the best rate for your needs.

Are we ready for a low, interest rate environment?

January 29th, 2016

News that the Bank of Japan moved to negative interest rates this morning has caused a stampede into U.S. bonds and this may be good for the mortgage interest rate/domino effect.  Higher bond prices = lower yields = lower, long term interest rates.  Although this news can easily be offset with other strong economic data that may be reported today, for now, we may see improving rates.

Mortgage rates fell again in the week ending Jan. 28 according to data from Freddie Mac. The average 30-year FRM was down to 3.79 per cent from 3.81 per cent a week earlier; 15-year FRM’s averaged 3.07 per cent, down from 3.10; and 5-year ARM’s averaged 2.90 per cent, down from 2.91 per cent. The Fed’s decision to hold interest rates and a stabilizing of government bonds helped to lower rates and Freddie’s chief economist Sean Becketti believes that sub-4 per cent mortgage rates should remain for a while longer.

ABBA First has the rate and terms that people desire.  With products from A to Z and several wholesale lenders to choose between, your dreams for a mortgage with the best rate and terms, are available through our company.  Call us today and save money!

Should you lock in your rate or float?

January 28th, 2016

Rates are trending unchanged this morning.  The MBS market improve by 7 bps yesterday.  This was not enough to improve mortgage rates or fees.  The market experienced moderate volatility yesterday. Mortgage rates continue to trend lower as the MBS market has improved 114 BPS since the beginning of the year, enough for an approximate improvement of .25% in rate.

Initial Weekly Jobless Claims were close to expectations (283K vs 282K) and were above 280K for the third straight week. But the more closely watched 4 week moving average dropped from 285K to 283K.  Still well below the 300K threshold.  Pending Home Sales were released at 10EST.  It is expected to “flip flop” from Novembers -0.9% to a reading of +0.8% in December. Existing Home Sales for December saw a jump as loans finally made it through the system that was clogged with the transition of pre vs post TRID guidelines/disclosures. Oil prices are rising as now Russia has joined the fray. Russia is now wanting to coordinate a pullback in production along with OPEC members. While these are only talks at this point, oil is making some small and steady gains as trader sentiment is beginning to shift. Already today there is allot of volatility and ABBA First will continue to monitor the markets as techs are still slightly bullish but softening. Volatility after slowing into the FED meeting yesterday is back; this morning crude oil, stocks and bonds have exhibited increased uncertainty.  BECAUSE CONFIDENCE LEVELS HAVE LESSENED DUE TO THE FED MEETING YESTERDAY, TREASURIES ARE AT STRONG RESISTANCE LEVELS.  CRUDE OIL PRICES MAY HOLD THE KEY TO THE DIRECTION OF RATES TODAY.

Today’s Potential Rate Volatility:  High

The risk for volatility is high today as its already been a crazy morning.  We’re coming up against some key mortgage rate levels that could cause mortgage increase volatilit

Call Rich Biagini at ABBA First Mortgage to be quoted the best, most up to the minute interest rate and terms for all your mortgage needs.  910-332-0650 ext. 101 or apply online for a same day pre-approval.

Catch the low rate fever

January 26th, 2016

ABBA First leads the way!  See our rates by clicking on the RATES tab and choosing the state that your property is located in or by linking to the web address at:

http://www.abbafirst.com/north-carolina-mortgage-rates-08.php

  • Rates on home loans fell sharply this past week to their lowest levels in three months.
  • Freddie Mac announced that, for the week ending January 21, 30-year fixed rates fell to 3.81% from 3.92% the week before.
  • The average for 15-year loans decreased to 3.10%.
  • The average for five-year adjustables also decreased to 2.91%.
  • A year ago, 30-year fixed rates were at 3.63%, lower than today’s levels.
  • “The Freddie Mac rate survey had difficulty keeping up with market events this week. The 30-year rate dropped 11 basis points to 3.81 percent, the lowest in three months. This drop reflected weak inflation — 0.7 percent CPI inflation for all of 2015 — and nonstop financial market turbulence that is driving investors to the safe haven of Treasuries. However, the survey was largely complete prior to Wednesday’s Treasury rally that drove the yield on the 10-year Treasury below 2 percent, down 29 basis points since the end of 2015.”
  • Compared to the maeketplace, ABBA First offers lower rates and costs to earn your business this time…and for a lifetime!  Give us a call at 910-332-0650 and ask to speak to Rich (the Owner/President since 2005).

What’s happening in the mortgage market-

January 19th, 2016

 

  • Rates on home loans fell this past week.
  • Freddie Mac announced that, for the week ending January 14, 30-year fixed rates fell to 3.92% from 3.97% the week before.
  • The average for 15-year loans decreased to 3.19%.
  • The average for five-year adjustables also decreased to 3.01%.
  • A year ago, 30-year fixed rates were at 3.66%, lower than today’s levels.
  • “Long-term Treasury yields continue to drop, dragging rates on home loans down with them. Turbulence in overseas financial markets is generating a flight-to-quality which benefits U.S. Treasury securities. In addition, sagging oil prices are capping inflation expectations. The net effect on the 30-year fixed rate was a 5 basis point drop to 3.92 percent.” 
  • ABBA First Mortgage has stayed ahead of the curve by always offering lower than market rates for better than market clients.  We appreciate your business and will continue to raise the bar of excellence in service and competitive, low pricing.

Overseas unrest = investment in war bonds = lower rates

January 6th, 2016

It is sad to think that bad economic issues throughout the world leads to the possibility of lower mortgage interest rates.  However, that IS a major contributing factor as to where rates have been recently and where they might be heading.  The detonating of a hydrogen bomb by the North Koreans has caused many countries to look for a safe haven when it comes to investing their capital for the future.  The US Treasury war bonds have historically captured much of this market and from these investments, our mortgage interest rates indirectly may have improved.  Keep your eyes and ears open for this type of  improvement may trump any national economic news that may be reported during the near future.  Call ABBA First Mortgage for up to the minute rates and fees that may offer you something different that has been posted on our website in the morning.

Happy new year(?) Rates edging slightly higher

January 4th, 2016

Average mortgage rates ended higher in the last week of 2015 amid the recent interest rate rise from the Fed. The Primary Mortgage Market Survey from Freddie Mac showed that 30-year fixed rate mortgages averaged 4.01 per cent, up from 3.96 per cent in the previous week; 15-year fixed rate mortgages averaged 3.24 per cent, up from 3.22 per cent; 5-year ARM’s averaged 3.08 per cent, up from 3.06 per cent; 1-year ARM’s averaged 2.68 per cent and were unchanged.

ABBA First Mortgage strives to keep their rates below the average published rate WITHOUT any points as compared to the competition.  If you choose to pay points with ABBA First, we will lower your rate even further.  Give us a call to discuss the particulars of your mortgage and we will quote you aggressively to meet your wants and desires.

This week in the world of mortgage rates

December 29th, 2015
  • Rates on home loans were little changed this past week.
  • Freddie Mac announced that for the week ending December 24, 30-year fixed rates fell one tick to 3.96% from 3.97% the week before.
  • The average for 15-year loans was unchanged at 3.22%.
  • Adjustable rate mortgages were up slightly, with the average for one-year adjustables increasing one tick to 2.68% and five-year adjustables rising to 3.06%.
  • A year ago, 30-year fixed rates were at 3.83%, a bit lower than today’s levels.
  • Attributed to Sean Becketti, chief economist, Freddie Mac –“Treasury yields dropped slightly as the holidays approached. Rates on home loans remained largely unchanged, with the 30-year fixed rate ticking down a basis point to 3.96 percent. As was mentioned last week, long-term interest rates will not spike in response to the Federal funds rate increase. While we expect the 30-year rate to be above 4 percent in early 2016, we anticipate rates will gradually increase, averaging 4.4 percent for the year.”

*Rates indicated do not include fees and points and are provided for evidence of trends only.  They should not be used for comparison purposes.  Often banks charge points for rates and the rates shown above may be subject to these additional costs.  ABBA First Mortgage quotes with no points unless one chooses to pay points to lower their interest rate.

When can one get rid of PMI? It can be done!

December 22nd, 2015

Mortgage Insurance does go away!  Between paying down your mortgage to 80% and/or the property appreciating in value, the likelihood may be sooner rather than later.

Home buyers who can’t put at least 20 percent down usually have to carry private mortgage insurance, often an expensive proposition. One good thing about the insurance, though, is that it doesn’t last forever. Private mortgage insurance protects the lender in the event that a borrower stops making payments before building up much equity in the property. But a borrower who diligently pays down a loan, eventually crossing that 20% equity threshold, is no longer considered a big risk, and can expect to be rewarded with cancellation of the requirement. Under the Homeowners Protection Act of 1998, lenders must terminate the insurance after a certain point, something that hadn’t been done consistently before then. The act set the termination date as the point at which the principal balance on the loan is scheduled to reach 78% of the original value of the home. A compliance bulletin issued earlier this month by the Consumer Financial Protection Bureau reminded lenders that automatic insurance cancellation is required even if the value of the home has declined from the original value (in other words, the sales price). The law also creates a way to seek earlier cancellation. (The cancellation rules do not apply to the low down payment loans backed by the Federal Housing Administration as borrowers must pay insurance for as long as they have an FHA loan if the loan was acquired after June of 2013.)

This is good news

December 19th, 2015

In what was one of the most widely telegraphed moves ever, last week the Federal Reserve Board’s Federal Open Market Committee met and decided to raise their federal funds rate by .25%. To say that this move of raising rates was expected is an understatement. The Fed had talked of raising rates for so long that the only surprises which could have come from the meeting was no increase at all or a larger increase.

Actually, the lack of a surprise was in keeping with Fed policy, as it is their goal to be as transparent as possible with regard to their monetary policy. And because there was no surprise, there was no great reaction in the markets. Rates had already risen slightly in anticipation of the decision, but eased a bit afterwards as stocks turned negative as the week came to a close.

As we have been indicating all along, the Fed’s words accompanying their actions would be as important as the Fed’s actions themselves. So what did they say? Here is an excerpt: “The committee expects that economic conditions will evolve in a manner that will warrant only gradual increases in the federal funds rate; the funds rate is likely to remain, for some time, below levels that are expected to prevail in the longer run.” Thus, the wording was designed to provide further assurance that the Fed is not going to be raising rates rapidly in a knee-jerk reaction. This is good news for those who want to purchase real estate in 2016. Rates are still at historically low levels and the Fed does not want to upset the apple cart too quickly.