ABBA First Mortgage News

Lowest rates in 30 years

June 30th, 2016

Rates for 30-year U.S. mortgages dropped to the lowest level in more than three years as U.K. voters’ decision to leave the European Union drove investors to the safety of American government bonds that guide home loans.

The average rate for a 30-year fixed mortgage was 3.48 percent, down from from 3.56 percent last week and the lowest since early May 2013, Freddie Mac said in a statement Thursday. The average 15-year rate slipped to 2.78 percent from 2.83 percent, the McLean, Virginia-based mortgage-finance company said.

The good news for both buyers and homeowners looking to refinance is that the Federal Reserve isn’t likely to raise interest rates any time soon. Brexit has only heightened concerns about the global economy that have been pushing down borrowing costs since the start of the year.

Is today the day?

June 25th, 2016

With Great Britain pulling out of the EU, we saw our markets react quickly to this news flash.  But will it last and is there any good news in all of this?  At least temporarily, we will have record low rates again and for those who react quickly, refinancing or purchasing a home will be a great move.

Give ABBA First a call at 866-676-3349 or email richsr@abbafirst.com and allow us to quote you aggressively for your needs and save you money over our competitors who pay big dollars to advertise seeking to obtain your business.  Our low overhead allows us to keep our rates and fees to a minimum therefore saving you money as you either refinance for a better rate and/or for cash out of the equity in your home.  We also have purchase specials to offset a portion or all of your closing costs if that is the direction that you would like to take.  Call us to discuss your mortgage needs!

Improving rates-today!

June 22nd, 2016

Rates fell to another three-year low in the past week.  Freddie Mac announced that, for the week ending June 16, 30-year fixed rates fell to 3.54% from 3.60% the week before.  The average for 15-year loans decreased to 2.81% and the average for five-year adjustables also fell to 2.74%.  A year ago, 30-year fixed rates were at 4.00%, almost one-half of one percent higher than today’s levels.  Attributed to Sean Becketti, chief economist, Freddie Mac — “The 10-year Treasury yield continued its free fall this week as global risks and expectations for the Fed’s June meeting drove investors to the safety of government bonds. The 30-year rate on home loans responded by falling 6 basis points for the second straight week to 3.54 percent — yet another low for 2016.  Wednesday’s Fed decision to once again stand pat on rates, as well as growing anticipation of the U.K.’s upcoming European Union referendum will make it difficult for Treasury yields and — more importantly — rates on home loans to substantially rise in the upcoming weeks.”

ABBA First continue to offer rates that are more than competitive and our service to get the loan through the new rules and regulations for our borrowers is second to none!  Please call us at 910-332-0650.

Low rates are still here!

June 16th, 2016

Mortgage rates for 30-year U.S. loans fell to the lowest level in three years as expectations for the Federal Reserve’s June meeting and Britain’s potential exit from the European Union drove investors to the safety of U.S. bonds.

The average rate for a 30-year fixed mortgage was 3.54 percent, down from from 3.6 percent last week and the lowest since May 2013, Freddie Mac said in a statement Thursday. The average 15-year rate slipped to 2.81 percent from 2.87 percent, according to the McLean, Virginia-based mortgage-finance company.

Mortgage rates are tracking a decline in yields for U.S. Treasuries as turbulent global markets increase competition for the benchmark securities. Federal Reserve policy makers held rates steady Wednesday and signaled that borrowing costs will remain low for some time.

ABBA First still offers better than average rates for our better than market clients.  Please compare your quotes with other mortgage opportunities and you too will find out that we please all of our clients by searching for the BEST options of rate and terms that we can offer.

Feds put off raising interest rates…for now

June 15th, 2016

The Federal Reserve Board declined to raise interest rates at its policy meeting today, fulfilling the expectations of many economists who said a rate hike was unlikely after an exceptionally weak May jobs report.  Fed Chair Janet Yellen raised economists’ expectations that they would hold off on a June hike to near certainty earlier this month when she failed to mention the possibility in a speech.  Yellen did say in that speech, however, that an eventual rate hike was still in the cards.  “If incoming data are consistent with labor market conditions strengthening and inflation making progress toward our 2% objective, as I expect, further gradual increases in the federal funds rate are likely to be appropriate,” she said.

Most observers had expected a June interest rate hike to be fairly likely at this meeting. But on June 3, the Labor Department reported that just 38,000 new jobs had been created in May. That’s the worst job creation in six years – and about 120,000 fewer jobs than projected.  The disappointing economic news – along with Yellen’s hints in the Philadelphia speech – dramatically dropped expectations of a hike.

Will the Feds raise the rates?

June 13th, 2016

It was expected that there was close to a 50-50 chance of a rate increase. Now the chance of the Fed taking action and raising the Fed rate has been lowered significantly. As a matter of fact, many are now predicting that rates may not go up after the July meeting as well.

The concern over the weak jobs report has not gone unnoticed by the Federal Reserve Governors. Federal Reserve Governor Lael Brainard called for a reconsideration of any potential rate hikes, citing a slowing labor market and continued evidence of global economic instability as reasons for the Fed to keep its foot on the financial brake. Chairperson Yellen had this to say the following week: “This past Friday’s labor market report was disappointing.” Thus, there is good reason for the markets to believe that the Fed will hold off.

Add this to the mix- the markets seem to love any news that would cause the Fed to hold off from raising rates. The Wednesday after the jobs report, the Dow hit the 18,000 level, but then fell back late in the week. Secondly, keep in mind that the monthly job numbers are frequently volatile and subject to major revisions. Even if the Fed does not make a move, there will be another employment report released before the July meeting. While it is not likely the numbers could rebound enough to erase doubts, May’s job numbers might still prove to be an anomaly.

The direction of mortgage interest rates

June 7th, 2016
  • Rates rose slightly in the past week, but these numbers were released before the weak jobs report was unveiled.
  • Freddie Mac announced that, for the week ending June 2, 30-year fixed rates rose to 3.66% from 3.64% the week before.
  • The average for 15-year loans increased to 2.92%.
  • A year ago, 30-year fixed rates were at 3.87%, approximately one-quarter of one percent higher than today’s levels.
  • Attributed to Sean Becketti, chief economist, Freddie Mac — “Since jumping 11 basis points on May 18th, the 10-year Treasury yield has leveled-off around 1.85 percent. Rates on home loans continue to adjust to this new level with the 30-year fixed rate inching up another 2 basis points this week to 3.66 percent. Recent statements by the Fed appear to have persuaded the market that a rate hike may come sooner than later. However, the market is fickle, and Friday’s employment report has the potential to swing opinion 180 degrees in the other direction.”

Note: 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 has consistently led the industry by offering better than market rates for better than market clients.  Call today to find out what we can offer you for your next mortgage!

No credit scores. So what! Soon it will not matter!

June 6th, 2016

Credit scores were first founded in 1995. Soon we will have another piece of a credit report puzzle added. On June 25, Fannie Mae will be rolling out the automation of a manual process for residential loan applicants without credit scores, according to Mindy Armstrong, senior product manager at Fannie Mae. Here’s how it will work: A loan officer takes your application and runs your credit, but the credit bureaus Equifax, Transunion and Experian have no credit scores for you. This usually happens because you don’t have any or don’t have enough traditional credit (credit cards or auto financing, for example). In the past, that meant that loan officers were unable to qualify you for a loan backed by Fannie Mae. But soon, you will qualify — opening up a vast new array of borrowing options. You are eligible for a purchase or a no cash-out refinance loan, if the lender can gather at least two pieces of credit information that covers the last 12 months. One must be a verification of rent. The other can be anything from a utility bill to on-time payments to your local gym. You must put a minimum of 10 percent down (or have 10 percent equity when refinancing), all of which can be a gift. It has to be a single unit primary residence and loan amounts cannot exceed $417,000. Source: The Orange County Register

Rates still good-but recently trending upwards

June 3rd, 2016

Mortgage rates continued their upward trend this week, but are still holding near three-year lows, according to new data from Freddie Mac.

“Since jumping 11 basis points on May 18, the 10-year Treasury yield has leveled off around 1.85%,” said Freddie Mac chief economist Sean Becketti. “Mortgage rates continued to adjust to this new level with the 30-year fixed rate inching up another two basis points this week to 3.66%. Recent statements by the Fed appear to have persuaded the market that a rate hike may come sooner than later. However, the market is fickle, and Friday’s unemployment report has the potential to swing opinion 180 degrees in the other direction.”

The average rate for the 30-year FRM rose from 3.64% last week to 3.66% this week. Last year at this time, the 30-year FRM averaged 3.87%.

The 15-year FRM also rose, averaging 2.92% this week compared to last week’s 2.89%. The rate is still holding below last year’s 3.08%.

The 5-year Treasury-indexed adjustable-rate mortgage averaged 2.88% this week, up slightly from last week’s average of 2.87%. a year ago at this time, the 5-year ARM averaged 2.96%.

Mortgage interest rates are moving up slightly

May 31st, 2016

U.S. mortgage rates rose, boosting home-loan costs from the lowest levels since 2013, as investors speculated on the timing of the Federal Reserve’s next interest rate increase.

The average rate for a 30-year fixed mortgage was 3.64 percent, up from 3.58 percent last week, Freddie Mac said in a statement Thursday. The average 15-year rate rose to 2.89 percent from 2.81 percent, according to the McLean, Virginia-based mortgage-finance company.

Mortgage costs are tracking a jump in Treasury yields after last week’s release of minutes from the Federal Open Market Committee’s April 27 meeting. At the time, most members considered a June rate increase appropriate if the economy continued to improve, the minutes show. There’s a 32 percent chance the central bank will boost rates at next month’s meeting, up from just 4 percent two weeks ago, according to data compiled by Bloomberg on federal funds futures.

The average 30-year mortgage rate has been below 4 percent since the beginning of the year, helping to bolster demand for home purchases. Contracts to buy previously owned homes rose 5.1 percent in April to the highest level since February 2006, the National Association of Realtors reported Thursday.

Bloomberg News