ABBA First Mortgage, Inc. - Wilmington, NC

9/23- Will we see improvements?

September 23rd, 2014

ABBA First will keep an eye on the Middle East and how it may affect our rate environment. Concerns abound as we see the first air strike of Syria and the unrest becomes war! Sadly, this typically has a direct correlation on the markets with rates being poised to improve as US Treasury bonds tick up in price.

Last week the Markets
• Fixed rates ticked up slightly last week, but remained near their lows for the year.
• Freddie Mac announced that for the week ending September 11, 30-year fixed rates rose slightly to 4.12% from 4.10% the week before.
• The average for 15-year loans also ticked up slightly to 3.26%.
• Adjustables rose slightly as well, with the average for one-year adjustables moving up to 2.45% and five-year adjustables increasing to 2.99%.
• A year ago 30-year fixed rates were at 4.57%.
• Attributed to Frank Nothaft, vice president and chief economist, Freddie Mac — “Rates on home loans were up slightly this week, following the increase in 10-year Treasury yields, despite last week’s disappointing employment report. The U.S. economy added only 142,000 jobs in August, after a 212,000 gain in July and a 267,000 increase in June. The unemployment rate fell to 6.1 percent in August from 6.2 percent the previous month.”
Rates indicated do not include fees and points and are provided for evidence of trends only. They should not be used for comparison purposes.

9/18- Why choose ABBA First for your next mortgage?

September 18th, 2014

“The best place for a borrower to get a mortgage is at a broker. Brokers have more options than any mortgage bank. Mortgage brokers have all different lenders they can try,” he said. “When I have a friend who needs a loan, I always refer him to a broker, because that’s going to be where he gets the best deal. Consumers want the best deal for them, and mortgage brokers are the best way to go.” This is a quote from UWM President Mat Ishbia. “They’re the most educated mortgage professionals, especially now. They have to go through all the licensing, all the testing,” he said. “Banks don’t have to have their loan officers go through all that testing. They don’t have that scrutiny. The ones that are around today, especially – who’ve been through QM (Qualified Mortgage) and all the regulatory rules – are some of the best mortgage professionals around.” ABBA First Mortgage leads the way with loan officers that have over 25 years of combined education, testing and experience in the mortgage industry. With lower than market rates for better than market borrowers, it makes all the sense in the world to obtain your next mortgage through them.

9/15- Important FHA information

September 15th, 2014

Recently, the Federal Housing Administration announced that they are halting the policy of allowing lenders to collect interest to the end of the month when the homeowner’s FHA mortgage is paid off. Beginning in January of 2015, lenders will be able to collect interest until the day the loan is paid off. However, it should be noted that for the millions of homeowners who currently have home loans insured through FHA, there is no change in policy. The new policy affects only those who obtain new FHA loans in January of 2015. What does this mean for present homeowners? It is important to time refinances and sales of houses to allow time to get the payoff to the present lender before the end of the month. Otherwise, the homeowner could owe a full month of extra interest. The worst time to close on a real estate transaction is the last day of the month because all service providers are especially busy on that day — from the lender to the settlement company. This rule is more on target for those who have FHA loans because payoffs do not go to the lender the same day. On refinances, the homeowner should close their new loan 10 days before the end of the month because the present loan is not paid off until a three day “right of rescission” expires. On a purchase, allow at least one full week before the end of the month to make sure you don’t get stuck paying almost a full extra monthly payment on the present loan being paid off. Note: If you are considering moving up or refinancing your present home and are not sure whether you presently have an FHA loan, we would be happy to help you determine this as well as assisting you with your new transaction.

9/8- The beginning of another week!

September 8th, 2014

The average 30-year fixed rate mortgage stood at 4.1 percent for the week ending last Wednesday. Mortgage rates have drifted down in recent weeks as bond yields on 10-year Treasury notes have fallen. Investors have bought government debt amid rising concerns over geopolitical instability. One of the bigger surprises of 2014 may be that mortgage rates might end the year lower than where they began, at around 4.5 percent, even as the Federal Reserve has gradually pared back its purchases of mortgage-backed securities. Outside of the U.S. Markets, this is always a fun time of year… as football is underway!

9/5- Stable rates BUT poised to change

September 6th, 2014

Fixed rates were stable again in the past week, remaining near their lows for the year; still slightly above the lowest ever back in the late 2012 and early 2013 years, but far below the rates that most of us have been accustomed to over our the span of our life times. A pick-up in the economy is expected to help propel the housing market forward, with an increase in household formation and a stronger recovery. “The economic growth and labor market gains we saw in the second quarter of this year are projected to continue, strengthening household formations and the housing sector. A recovering housing sector will sustain the rally in home building, despite likely increases in long-term rates. Increased construction activity will further accelerate the improvement in labor markets and fuel even more household formations and more housing demand. The result is an economy that gradually recovers back toward its potential” as stated by Frank Nothaft, Freddie Mac’s chief economist. We will see as our economy continues to show growth, albeit at a very slow pace.

8/29- Another good report for our economy

August 29th, 2014

Consumer Sentiment 82.5 vs. the estimate of 80.2, which is once again a better than expected economic report that is going to be overshadowed by international events and unlikely to cause a MBS sell off. This means that although rates should deteriorate by going up, the fears of the global economy (including the present day wars and rumors of wars) are keeping this from happening.

8/28- Hold everything!

August 28th, 2014

We have just experienced GREAT NEWS for the economy including better housing starts. This typically relates to a major worsening in mortgage interest rates. HOWEVER, the conflicts overseas weigh heavily against any deterioration as the global concerns trumped the direction that rates may be taking today.

8/27- A synopsis of the growth of our economy

August 27th, 2014

Last week we enjoyed a hat trick of good news; with existing home sales enjoying particularly good performance, new home construction following with solid gains, and initial jobless claims falling more than expected.

Existing Homes

Sales of existing single-family homes, townhomes, condominiums and co-ops during July hit their highest point in the year, and distressed property sales dropped to an important low. July’s existing home sales grew 2.4 percent to hit an annual rate of 5.15 million, marking the fourth consecutive month of growth and the highest pace of 2014, the National Association of Realtors reported last week. That said, July’s sales were still 4.3 percent down from July 2013’s 5.38 million-home rate.

Housing Starts

New home construction also saw good news. Starts on construction of new homes in July jumped a whopping 15.7 percent to hit an annual rate of 1,093,000, according to last week’s report from the Census Bureau and the Department of Housing and Urban Development. July’s housing starts were also 7.7 percent over July 2013’s estimate of 977,000. Starts on single-family homes grew by 8.3 percent to a rate of 656,000.

Initial Jobless Claims

First-time claims for unemployment insurance filed by the newly unemployed during the week Aug. 16 dove to 298,000, a drop of 14,000 claims from the prior week’s revised level of 312,000, the Employment and Training Administration reported last week. This soundly beat market expectations of 308,000 claims.

That said, the four-week moving average, which is considered a more reliable measure of near-term employment activity notched up to 300,750 claims, a gain of 4,750 from the preceding week’s revised average of 296,000 claims.

All of the above positive growth is a good sign that out economy is improving. However, good news for the economy is not necessarily positive news for long term interest rates. Consider your options and look to lock in your rate at a moment’s notice.

8/20 #2-Fed minutes

August 20th, 2014

FOMC Minutes: Labor market is improving, may need to adjust their definition of “slack”
A few thought that tightening should start soon, a few thought it should be way down the line but the majority felt that more data was needed. Slightly negative pricing for the MBS which may cause rates to be a little bit more costly.

8/20- Breaking News

August 20th, 2014

There are no major economic releases today until the 2:00EST Fed minutes are released. But our benchmark FNMA MBS (the purchasing of Fannie Mae Mortgage Backed Securities) just broke below our 25 day moving average which is a very negative technical sign and you should be watching this very carefully. This could cause rates to go up….quickly!

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