ABBA First Mortgage, Inc. - Wilmington, NC

Low today- gone tomorrow?

April 20th, 2015

The Federal Reserve Board has said it again and again. They are raising rates this year. While we still don’t know at what meeting the increase will come, the markets have had plenty of time to get used to the fact that rates are going up. But are we ready as the mortgage financing segment of the nation?  We find that the markets are now obsessing about what comes next after the Fed fires its first volley. When will the second move come? How far and how fast will rates be ratcheted up?

For their part, the Fed is trying to calm the markets in this regard. For example, Chairwoman Yellen last month made it clear that there will be plenty of notice to the markets before the first increase in interest rates and that the Fed will not be “impatient” with regard to their moves because the economy is not where it needs to be — “If underlying conditions had truly returned to normal, the economy should be booming,” she said. Investors are anxious about the Fed raising interest rates later this year for the first time in about a decade. But Yellen continues to strongly hint that the Fed won’t push interest rates significantly higher anytime soon.  This is good news for those in the market to finance or refinance their mortgage.  However, my take on this situation is to set the table NOW; be ready to lock in your rate at a moment’s notice BEFORE the rates go up.  I hope that you agree and will call ABBA First Mortgage now and take advantage of the low, more than competitive, rates that we offer to our clients.

This upcoming week

April 13th, 2015

The inflation measure- Producer Price Index, will be reported on Tuesday, followed by the Consumer Price Index on Friday. The Retail Sales number on Tuesday and Consumer Sentiment on Friday will tell us about the state of the consumer sector. Business Inventories on Tuesday, Empire State Manufacturing Survey and Industrial Production on Wednesday will show the current and future condition of the industrial sector. The Housing Market Index on Wednesday and Housing Starts on Thursday will contribute to the housing market story. Don’t forget about Tax Day ’15, and stay tuned!

Better credit reporting system in the works

April 7th, 2015

For decades, consumers have been complaining about the challenges with disputing items with the credit reporting agencies. Finally, the credit reporting giants TransUnion, Equifax and Experian announced that they have agreed via a settlement with the New York Attorney General’s Office to overhaul their dispute investigation process. Finally “reasonable investigation” will really mean reasonable. This is the first major change in more than a decade and it has some very promising dynamics, so let’s break them down.

  • First, the bureaus are going to staff and train employees to read the information provided by the consumer and have power to make an accurate decision based on the data. Prior to the settlement, the bureaus took the word of the data furnisher most every time regardless of the paperwork provided by the consumer.
  • Next the bureaus will impose a 6 month waiting period for medical debt to be reported to a consumer’s credit report. This will allow for any discrepancies to be resolved ahead of time. Also, once a medical debt has been paid, it will be removed from the credit report!
  • Last, the “Big Three” as they are known, will post to their paid websites that consumers can access their credit for free through www.annualcreditreport.com. They will also have to provide an additional report if they experience a change in their report after initiating a dispute. This may be the most significant change we have seen in regards to credit reporting procedures. All of these changes will go into effect over the next 6-36 months as this is a massive undertaking by the bureaus. It should prove to be extremely helpful for consumers and companies to expedite and complete investigations. Source: Chad Kusner, Credit Repair Resources

Rates forecasted for the future

April 3rd, 2015

Today is the beginning of Easter weekend and we typically see rates worsen during an extended holiday weekend.  That is not the case this morning.  Rates are poised to improve today on the early morning press release that our country lost 69,000 jobs over the first quarter of 2015.  This is not good news and historically the mortgage market tends to rally on poor economic data.

Overall indications for 30 year mortgage interest rates

  • MBA Experts predict 30-year fixed mortgage rates will end 2015 at 4.6%, going to 5.4% at end of 2016.  Regardless, historically low and good for affordability as rental rates have been climbing.
  • Currently it’s at 3.99%.
  • However, ABBA First is offering a 3.625% rate with zero points today for qualified borrowers.
  • The housing market experienced a refi boomlet in January 2015 as rates dropped back below 4%.  But we expect that activity will continue to decrease through the course of the year as rates rise.
    • Global volatility, both political and economic, will, however, continue to keep downward pressure on longer term US rates.
    • This rate forecast is based on our assumption that the Fed will raise rates in June, increase again later in the year, then likely pause before resuming further increases in mid 2016.

Please call ABBA First Mortgage to lock in your rate soon.  Set the table by completing our online application at:  www.abbafirst.com

Rates tending to move down

March 31st, 2015

Rates on home loans moved lower again in the past week, as the markets continued to react positively to a more dovish message from the Federal Reserve Board.  Freddie Mac announced that for the week ending March 26, 30-year fixed rates decreased to below 3.78% from the week before.  The average for 15-year loans fell to below 3.0%.  A year ago, 30-year fixed rates were at 4.40%, which continues to be more than 0.50% higher than today’s levels.  ABBA First leads the mortgage industry with competitive rates, low closing costs and outstanding service.  Call today for your free, no obligation quote and see how we can save you money

Rates indicated do not include fees and points and are provided for evidence of trends only. They should not be used for comparison purposes.

Good, better, best? Steady for sure.

March 23rd, 2015

The Bond markets saw Treasury bonds rally after the Fed statement of unchanged short term interest rates (which affects the prime rate). However, the Central Bank made clear that it is in no rush to tighten monetary policy. Treasury debt rallied strongly, pushing the yield on the 10-year Treasury note well below 2.00 percent. Investors and market watchers noted that the Fed’s newly released projections for economic growth and inflation were both lower than the Central Bank’s forecasts from December, likely justifying a slower trajectory of rate increases.  Since then, mortgage interest rates have held steady after the worsening from Thursday which gave back much of the improvements up to that point.  Going forward, we hope to see additional improvement, but that is not likely unless there is major global unrest and/or disappointing economic data this week.  Although these are typical triggers to bettering our mortgage interest rates, the reasoning is not limited to these two catalysts of change.  We will keep updating this news site as changes take place.

Looking back over this past week

March 20th, 2015

The mortgage industry is so demanding.  Mortgage rates are so fickle.  But time marches on and we are still living in an era where the rates are amongst the lowest in recorded mortgage history.  This past week was more of the same roller coaster ride but it ended with rates slightly improving.  The key words are “slightly improving”.  No big dips in mortgage rates but there are signs indicating continued improvement.  Fed chairperson, Janet Yellen, spoke on Wednesday and addressed our economy with the Federal Reserve Board.  In my estimation, although the economy is NOT showing signs of worsening, it is also not improving as fast as we may like it to.  Because of this, the Feds are not likely to raise the short term interest rate any time soon and we have a reprieve until sometime in the future.

Look for rates to improve slightly today

March 12th, 2015

For the month of February, Retail Sales were lower than anticipated.  This is the third straight month of dissapointing Retail Sales; clearly the lower gas prices are not stimulating our economy if consumers aren’t spending more. Overall this is positive for MBS (Mortgage Backed Securities) which in turn leads to lower mortgage interest rates.  Keep an eye on our rates today as ABBA First will be leading the charge in our industry with better than market rates for better than market people.

On the other hand, interest rates improved for third straight day

March 11th, 2015

Ok.  This is a new week and the seesaw has moved and has allowed rates to improve for the third day in a row.  We cheer for the improvement!  But in actuality, the three days put together barely make up for the one day of deterioration that took place last Friday.  So we have reason to be happy, but not too happy, for we are traveling on the same path that we have trod on before.  These changes for the better in mortgage interest rates will last until…ummm…tonight, as we are subjected to what the market has in store for us tomorrow when rates are republished in the latter part of the morning.  Until then you may want to set the able and have your application ready to be pre-approved which, through ABBA First Mortgage, allows us to be ready to lock in your rate and terms at a moment’s notice.  Go to: www.abbafirst.com and apply online today!

Rates moving up

March 6th, 2015

Today’s stronger than expected jobs report was great news for the economy, but it was negative for mortgage rates. As a result, mortgage rates went up today and ended the week higher.  This slight worsening is noted in mortgage interest rates across the board.  As a result of this positive economic news, the converse is typical when examining long term interest rates.  If the rates do not rebound as we have seen with the previous ups and downs, it may be time to lock in your rate prior to the obvious alternative of a higher rate.

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