ABBA First Mortgage News

For the two weeks preceeding the hurricane until today- the 18th of September- Rates have worsened!

September 18th, 2018

Rates were up again in the past week, but started to level off towards the end of the survey period. For the week ending September 13, Freddie Mac announced that 30-year fixed rates increased to 4.60% from 4.54% the week before. The average for 15-year loans rose to 4.06% and the average for five-year adjustables remained at 3.93%. A year ago, 30-year fixed rates averaged 3.78%. Attributed to Sam Khater, Chief Economist, Freddie Mac –“The one-two punch of strong job and consumer credit growth drove rates on home loans up to their highest mark since August 2. Rates are currently 0.82 percent higher than a year ago, which is the biggest year-over-year increase since May 2014. Looking ahead, annualized comparisons for applications may look weaker than they appear, but that’s primarily because of the large spread between rates now and last September, which was when they reached their low for last year. Overall, this spectacular stretch of solid job gains and low unemployment should help keep homebuyer interest elevated. However, rates will likely also move up, as the Federal Reserve considers short-term rate hikes this month and at future meetings.” 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 “decreased” slightly for second week in a row. ABBA First offers some of the lowest rates available

August 20th, 2018

Please read below and see how ABBA First Mortgage blows the competition away with their low rates and low fee combinations.  Call 910-332-0650 to take advantage of this today!

Mortgage rates took a step back during the week ending August 16, decreasing slightly for the second consecutive week, according to the Primary Mortgage Market Survey released by Freddie Mac.

The average rate for the 30-year fixed-rate mortgage declined to 4.53%, with an average 0.5 point, from 4.59% in the previous period. The latest average marked an increase from the 3.89% average in the same period in 2017.

ABBA First Mortgage offers a 30 year interest rate as low as 4.25% with 0 points to all qualified borrowers and continues to stay ahead of the national average ineterst rate.

The 15-year fixed-rate mortgage averaged 4.01%, with an average 0.5 point, down from the previous average of 4.05%. A year ago at this time, the 15-year fixed-rate mortgage averaged 3.16%.

ABBA First Mortgage leads the pack again by offering a rate as low as 3.75% with 0 points to all qualified borrowers.

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Rates for the 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.87%, with an average 0.4 point, slipping from the previous average of 3.9%. During the same week last year, the mortgage averaged 3.16%.

Freddie Mac Chief Economist Sam Khater said that mortgage rates staying mostly unchanged week over week has been the dominant theme since late spring. Khater noted that rates have been stable despite turbulent currency markets and the highest core inflation rates since 2008. However, the stability has not resulted in higher home sales.

“Purchase mortgage applications trailed year-ago levels again last week, and it’s clear that in some markets the combination of ascending home prices, limited affordable inventory, and this year’s higher rates are curtailing homebuyer demand,” Khater said

ABBA First is ready to meet or beat the competition for your business!

July 30th, 2018

Mortgage rates rebounded to their highest level since late June after moving up slightly over the previous week’s rates, according to the Primary Mortgage Market Survey released by Freddie Mac for the week ending July 26.  ABBA First Mortgage has kept pace with being a low rate provider with discounted interest rates for clients with the right credit scores and the required parameters.  Our rates are amonst the lowest that clients can find when comparing apples and apples but out service is by far the best offering one on one personal service all along the way.

The average rate for the 30-year fixed-rate mortgage was 4.54%, with an average 0.5 point, up from the 4.52% average in the prior period. The latest average is an increase from the 3.92% average rate in the year-ago period.  Check ABBA First Rates on our Rates page or by calling 910-332-0650 and asking for Rich, the owner of ABBA First, who will work with you to find the rate that you are looking for.

The 15-year fixed-rate mortgage averaged 4.02%, with an average 0.4 point, up from 4%. A year ago at this time, the mortgage averaged 3.2%.

Rates for the 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.87%, with an average 0.4 point, remaining unchanged from the previous survey. The 5-year ARM averaged 3.18% in the same week in 2017.

Remember, always call ABBA First before making your final decision about where you are going to place your loan.  Tell us that you are finished shopping and that you’re giving us a chance to be the One to earn your business and your trust NOW.

 

Wherefore art thou, Oh predicted Spike in Rates?

July 24th, 2018

Not that we long to see thou ugly face. However, it does not seem as though the Federal Resrve Board’s timing was accurate when predictng that the rate would be close to the 5’s by this time last year.  The 30 year interest rates were stable for the second straight week.  For the week ending July 19, Freddie Mac announced that 30-year fixed rates decreased one tick to 4.52% from 4.53% the week before. The average for 15-year loans fell slightly to 4.00% and the average for five-year adjustables moved up to 3.87%. A year ago, 30-year fixed rates averaged 3.96%. Attributed to Sam Khater, Chief Economist, Freddie Mac –“Manufacturing output and consumer spending showed improvements, but construction activity was a disappointment. This meant there was no driving force to move rates on home loans in any meaningful way, which has been the theme in the last two months. That’s good news for price sensitive home shoppers, given that this stability in borrowing costs allows them a little extra time to find the right home. Unfortunately, don’t expect much relief from the tight inventory conditions plaguing many markets. As seen again last month, new home construction is not picking up to meet demand, and as a result, home prices are still rising at double the pace of income growth.”  Unfortunately, at the beginning of the following week, July 25th, the MBS market tanked and our rates felt thr brunt of the worsening and ticked up by .125% as noted on the Rates Page of ABBA First Mortgage.  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.

More renters- Higher rental payments! Now’s your chance to own your home while rates are still low!

July 11th, 2018

If renters in your area are on the fence about whether to buy, now might be a good time. Rent hit an all-time high last month, hitting a national average of $1,408, according to new data, which might make homeownership more attractive – but it may be the growing challenges of homeownership that are driving the increased popularity of renting.

According to a study from RentCafé and Yardi Matrix, rent rose nationally by 2.9% year over year and 0.9% month over month. Rent increased in 88% of the country’s 250 largest cities, stayed static in 10%, and decreased in only 2%.

Renting is gaining popularity among families, according to RentCafé, and two- and three-bedroom units have been the main drivers of rent growth so far this year. However, June’s increases were almost perfectly balanced among unit types, as demand for one-bedroom and studio apartments caught up to demand for larger units.

“None of the rental mega-markets of the country escaped steep rent increases this month,” RentCafé said.

Orlando saw the largest proportional increase, with renters paying an average of 8.4%, or $104, more per month than they did in June of 2017. Apartments in Tampa, Phoenix and Las Vegas cost between 6% and 7% more than they did last year.

It seems that higher rents would cause renters to at least consider the option of purchasing a home while rates have remained stagnant instead of spiking up as predicted 2 years ago.  Check out the ABBA First Rates page.where you will still see that rates are in the 4’s for a 30 year mortgage.  Go to TOOLS on the menu bar and use the Mortgage Calculator to figure your monthly payment or call us at 910-332-0650 and let us walk you through the total payment of your new loan.

Happy 4th of July but be like the rates- and stay slow, steady, and stable just like last week.

July 3rd, 2018

Rates were stable in the past week after falling from recent highs.  For the week ending June 28, Freddie Mac announced that 30-year fixed rates decreased to 4.55% from 4.57% the week before.  The average for 15-year loans was unchanged at 4.04% and the average for five-year adjustables rose to 3.87%.A year ago, 30-year fixed rates averaged 3.88%.  Attributed to Sam Khater, Chief Economist, Freddie Mac — “The decrease in borrowing costs are a nice slice of relief for prospective buyers looking to get into the market this summer.  Some are undoubtedly feeling the affordability hit from swift price appreciation and rates on home loans that are still 67 basis points higher than this week a year ago.  As highlighted in our June Forecast, the economy and housing market overall are on solid footing this summer, which should support continued strength in housing demand.  Home price growth is still high, but is expected to moderate, and while sales activity has slowed, it’s primarily because of stubbornly low supply.”

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.

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.