ABBA First Mortgage News

The cost of a borrower having a lower credit score. ABBA First Mortgage can help you!

June 19th, 2018

Homebuyers carrying a lower credit score can wind up paying $21,000 more than a buyer with an excellent credit score. On a national level, recent data shows that a borrower with an “excellent” credit score could get a home loan with an annual percentage rate approximately 0.6% lower than a borrower with a “fair” credit score. The borrower with the “fair” credit score would thus spend $700 more per year for the typical home. In pricier housing markets, the extra dollars paid would be significantly greater.  “When you buy a home, your financial history determines your financial future,” said Zillow Senior Economist Aaron Terrazas. “Homebuyers with weaker credit end up paying substantially higher costs over the lifetime of a home loan. Of course, homeowners do have the option to refinance their loan if their credit improves, but as interest rates rise this may be a less attractive option.”  Source: Zillow 

Rates went up last week and then trended down this past week

May 30th, 2018

Rates rose again in the past week, though they started easing towards the end of the survey period. For the week ending May 24, Freddie Mac announced that 30-year fixed rates increased to 4.66% from 4.61% the week before. The average for 15-year loans rose to 4.15% and the average for five-year adjustables was up to 3.87%. A year ago, 30-year fixed rates averaged 3.95%. Attributed to Sam Khater, Chief Economist, Freddie Mac — “Rates on home loans so far in 2018 have had the most sustained increase to start the year in over 40 years. Through May, rates have risen in 15 out of the first 21 weeks (71 percent), which is the highest share since Freddie Mac began tracking this data for a full year in 1972. At a time when housing inventory remains extremely low, it’s worth watching whether these higher borrowing costs lead some would-be sellers to stay put in their current home. Inventory shortages would likely worsen if more homeowners decide not to sell out of reluctance of having a new home loan with a higher rate.”  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.

Rates are up again to the highest in SEVEN years! ABBA First offers fee discount to offset!

May 22nd, 2018

Rates rose to their highest level in seven years in the past week. For the week ending May 17, Freddie Mac announced that 30-year fixed rates increased to 4.61% from 4.55% the week before. The average for 15-year loans rose to 4.08% and the average for five-year adjustables was up to 3.82%. A year ago, 30-year fixed rates averaged 4.02%. Attributed to Sam Khater, Chief Economist, Freddie Mac — “Healthy consumer spending and higher commodity prices spooked the bond markets and led to higher rates on home loans over the past week. Not only are buyers facing higher borrowing costs, gas prices are currently at four-year highs just as we enter the important peak home sales season. While this year’s higher rates have not caused much of a ripple in the strong demand levels for buying a home seen in most markets, inflationary pressures and the prospect of rates approaching five percent could begin to hit the psyche of some prospective buyers.” 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.

Hard to believe that after going up and down and down and up- rates remain stable this past week-

May 15th, 2018

Although today we are a half percent higher in rate than a year ago, rates were stable in the past week. For the week ending May 10, Freddie Mac announced that 30-year fixed rates remained at 4.55%. The average for 15-year loans decreased slightly to 4.01% and the average for five-year adjustables rose to 3.77%. A year ago, 30-year fixed rates averaged 4.05%. Attributed to Sam Khater, Chief Economist, Freddie Mac — “The minimal movement of interest rates in these last three weeks reflects the current economic nirvana of a tight labor market, solid economic growth and restrained inflation. As we head into late spring, the demand for purchase credit remains rock solid, which should set us up for another robust summer home sales season.” 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.

Looking for a low mortgage rate before they go up even higher? Check out ABBA First rates!

May 8th, 2018

The Federal Reserve met and they did not raise the short term bank rate but instead put off their decision to raise rates until June.  Now is the time to catch a mortgage rate at the lows of today before they follow the trend that is set by the Feds just a few short weeks away.

Mortgage interest rates did not go up as many expected this past week.  Instead they held fairly steady while the 30 year even eased back a bit in the past week.  For the week ending May 3, Freddie Mac announced that 30-year fixed rates fell to 4.55% from 4.58% the week before.  The average for 15-year loans increased one tick to 4.03% and the average for five-year adjustables moved down to 3.69%.   A year ago, 30-year fixed rates averaged 4.02%.  Attributed to Sam Khater, Chief Economist, Freddie Mac — “While rates on home loans have increased by one-half of a percentage point so far this year, it has not impacted home purchase demand, which continues to grow this spring. The observed buyer resiliency in the face of higher rates reflects the healthy economy and strong consumer confidence, which are important drivers of home sales activity. It’s also good news that first-time buyers appear to be having more success so far this year – despite higher borrowing costs and home prices. Our data through April show that first-timers represent 46 percent of purchase loans, up from 43 percent over the same period a year ago.”

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.

Rising rates continue passing those of Aug 2013

May 1st, 2018

Rates continued to rise in the past week. For the week ending April 26, Freddie Mac announced that 30-year fixed rates rose to 4.58% from 4.47% the week before. The average for 15-year loans increased to 4.02% and the average for five-year adjustables moved up to 3.74%. A year ago, 30-year fixed rates averaged 4.03%. Attributed to Sam Khater, Chief Economist, Freddie Mac — “Rates on home loans are now at their highest level since the week of August 22, 2013. Higher Treasury yields, driven by rising commodity prices, more Treasury issuances and the steady stream of solid economic news, are behind the uptick in rates over the past week. Despite the increase in borrowing costs, demand for home purchase credit remains solid.” 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.

Although the MBS marketplace improved all day with slight movements upward, banks showed no signs of improving at all- not even an inch! It’s true. Banks easily worsen their rates at the drop of a dime, but are so very slow to improve their rates even when the market had allowed for it throughout the day. Keep your eyes open for any slight betterment that might be on the horizon that you will find on our rates page after these past several days of deterioration.

April 26th, 2018

Moving up quickly-Rates up a .05%

April 24th, 2018

Rates rose dramatically in the past week. For the week ending April 19, Freddie Mac announced that 30-year fixed rates rose to 4.47% from 4.42% the week before. The average for 15-year loans increased to 3.94% and the average for five-year adjustables moved up to 3.67%. A year ago, 30-year fixed rates averaged 3.97%. Attributed to Len Kiefer, Deputy Chief Economist, Freddie Mac –“Treasury yields rose ahead of the release of the Fed’s Beige Book and speeches from New York Fed President William Dudley and Fed Governor Randal Quarles. According to the Beige Book, economic activity in March and early April continued to expand at a moderate pace, however there is concern from various industries surrounding tariffs. Following Treasurys, rates on home loans increased. The U.S. weekly average 30-year fixed rate rose 5 basis points to 4.47 percent in this week’s survey, its highest level since January of 2014 and the largest weekly increase since February of this year.”

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.

Rates remain flat for another week without going up. Call 866-676-3349 and get your free quote!

April 17th, 2018

Rates were stable in the past last week. For the week ending April 12, Freddie Mac announced that 30-year fixed rates rose to 4.42% from 4.40% the week before. The average for 15-year loans remained at 3.87% and the average for five-year adjustables moved down slightly to 3.61%. A year ago, 30-year fixed rates averaged 4.08%, higher than today’s level. Attributed to Len Kiefer, Deputy Chief Economist, Freddie Mac –“Rates on home loans have been holding steady over the past two months. Rates have bounced around 4.4 percent since mid-February. Rates could break out and head higher if inflation continues to firm. The U.S. Bureau of Labor Statistics reported this week that the Consumer Price Index increased 2.4 percent over the 12 months ending in March, the largest 12-month increase in a year. Members of the Federal Reserve’s Federal Open Market Committee are looking at inflation indicators to help determine the appropriate path for policy. If inflation continues to trend higher, we may see two or three more rate hikes from the Fed this year, and rates on home loans could follow. For now, rates are still quite low by historical standards, helping to support homebuyer affordability as the spring homebuying season ramps up.” 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.

Steadily and slowly rates show little movement

April 3rd, 2018

Rates on 30-year fixed home loans were stable again in the past week. For the week ending March 29, Freddie Mac announced that 30-year fixed rates fell one tick to 4.44% from 4.45% the week before. The average for 15-year loans also decreased slightly to 3.90% and the average for five-year adjustables fell to 3.66%. A year ago, 30-year fixed rates averaged 4.14%, higher than today’s level. Attributed to Len Kiefer, Deputy Chief Economist, Freddie Mac — “Treasury yields fell from a week ago helping to drive rates on home loans slightly lower. The yield on the 10-year Treasury dipped below 2.8 percent for the first time since early February of this year. The decline in Treasury yields comes as investors move into safer assets amid increased trade tensions. Following Treasurys, rates on home loans fell slightly. The U.S. weekly average 30-year fixed rate fell 1 basis point to 4.44 percent in this week’s survey.” 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.