ABBA First Mortgage, Inc. - Wilmington, NC

11/24- Thanksgiving week!

November 24th, 2014

This week, markets will trade and there are a number of key economic releases as well as Treasury auctions. The 10 continues to hold present levels, neither improving or worsening. The number of analysts that were sure interest rates would be 40 basis points higher by now, have been exiting the building. The 10 is not likely to increase much between now and the end of the year. For all of the talk and discussion, the fixed income market is not buying into the idea the US economy will grow quickly enough to increase inflation concerns. It isn’t something you hear about, but one of the key forces keeping rates low is hedging against the increasing potential of a decline in the equity markets. Large investors and hedge funds should like moving into treasuries; there is very little risk in doing so, and there is an increasing sense the stock market may be close to a big correction.  Of course, that will be tragic to the USA and will affect the economy of the entire globe.

 

11/18- Low rates still available.

November 18th, 2014

In the past week, rates were stable near their lows for the year. Freddie Mac announced that for the week ending November 13, 30-year fixed rates ticked down slightly to 4.01% from 4.02% the week before. The average for 15-year loans decreased slightly to 3.20%. Adjustables were mixed, with the average for one-year adjustables falling to 2.43% and five-year adjustables increasing to 3.02%. A year ago, 30-year fixed rates were at 4.35%, higher than today’s levels.

11/13- Steady as she goes!

November 13th, 2014

 

Rates improved slightly on Friday the 7th.  Since then, and over the Veterans Day holiday, long term mortgage interest rates have been fairly stable with little movement expected either up or down.  The markets are holding well in a narrow range this week and last. The bellwether 10 year has traded between 2.39% and 2.30% since late October (10/29). No serious negativity but no reason to drive rates lower; with investors so bullish on stocks, and nothing to jar traders to safe haven positions rate markets sitting quietly for two weeks now. No inflation concerns are favorable for fixed income investments but are not enough to push interest rates lower. Ukraine tensions increasing but markets see that as nothing serious after panicking a few months ago. The EU divided on increasing sanctions on Russia, likely there will not be any more as the EU economies can’t take much more with the region’s economy slipping. Therefore, the reason for the title of this blog.  Not too much to forecast………today!

11/11- Happy Veterans Day!

November 11th, 2014

Today is Veterans Day, the day we give homage to those who have served our country by defending our freedom throughout our history. We only need to look at what is happening in the Middle East to be reminded as to how important those who have served are to each and every one of us. Many don’t realize how extensive the population of veterans is in this country. There are well over 20 million veterans and active military, comprising approximately 10% of the adult population of the United States.

In the past week, rates continued to rise from their recent lows of the year. Freddie Mac announced that for the week ending November 6, 30-year fixed rates rose to 4.02% from 3.98% the week before. The average for 15-year loans increased to 3.21%. ARMs were also higher, with the average for one-year adjustable moving to 2.45% and five-year adjustable rate mortgage increasing to 2.97%. A year ago, 30-year fixed rates were at 4.16%, higher than today’s levels.

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

11/10- Veterans: This is your time!

November 10th, 2014

 

Tomorrow we honor you, but today, ABBA First Mortgage is offering rates and terms for US veterans which are amongst the lowest in history.  We believe that you deserve the best!  Demand is booming. There are now an estimated 22 million veterans in this country, many of them with eligibility for VA loan benefits. In an era of extremely tight credit in the marketplace, the VA program looks like an extended hand for creditworthy vets who don’t have large amounts of money to put down on a home purchase or are transitioning into regular employment in the mainstream economy. Please- whether you are active military, a reservist or a retired veteran, give us a call for a quote to take advantage of the specials that we are offering to our men and women that have served the United States of America, our home sweet home!  (If you think your credit is an issue, we will do our best to assist you in overcoming lower than eliginle credit scores.

11/6- Rates trending slightly upwards

November 6th, 2014

Keeping an eye on mortgage rates with me?  Fairly flat over the long haul since we started navigating the mortgage market.  But it could turn sharply any day now (November) as the FEDs have made their last buy of MBS in October as per the stimulus package put in place many months ago.  They still have a few billion dollars to play with but that can easily be wiped out this month as they wait to see who will invest in our MBS and treasury bonds.  If no one steps up to the plate and the demand goes down causing their price to be reduced, the yield goes up and that transfers over to higher interest rates.  This month is important.  Our country needs to see an improving economy but that will lead to higher long term mortgage rates as well.  Conversely, if there are global woes in China, the EU, or the Middle East, then the safe haven may be purchasing of the US bond and an improvement in mortgage rates could be inevitable.

11/4-Election Day-Please VOTE!

November 4th, 2014

Rates rebounded in the past week but stayed near their lows for the year. Freddie Mac announced that for the week ending October 30, 30-year fixed rates rose to 3.98% from 3.92% the week before. The average for 15-year loans increased to 3.13%. Adjustables were also higher, with the average for one-year adjustables moving to 2.43% and five-year adjustables increasing to 2.94%. A year ago, 30-year fixed rates were at 4.10%, higher than today’s levels. Attributed to Frank Nothaft, vice president and chief economist, Freddie Mac — “Rates on home loans rose across the board this week, rebounding from the lowest rates of the year. New home sales grew at an annual rate of 467,000 sales in September, the fastest rate observed during the recovery. Meanwhile, the National S&P Case-Shiller House Price Index grew at a seasonally adjusted annual rate of 0.4 percent in August.” Rates indicated do not include fees and points and are provided for evidence of trends only. They should not be used for comparison purposes.

10/28- Rates hovering around the lowest in over a year

October 29th, 2014
  • Rates fell to their lowest level in more than a year in the past week.
  • Freddie Mac announced that for the week ending October 16, 30-year fixed rates fell to 3.97% from 4.12% the week before.
  • The average for 15-year loans decreased to 3.18%.
  • Adjustables were also down, with the average for one-year adjustables falling to 2.38% and five-year adjustables decreasing to 2.92%.
  • A year ago, 30-year fixed rates were at 4.28%, higher than today’s levels.
  • Attributed to Frank Nothaft, vice president and chief economist, Freddie Mac — “Rates on home loans were down sharply following the decline in the 10-year Treasury yield for the second straight week.  Rates are at their lowest levels since June 2013 amidst continued investor skepticism regarding the precarious economic situation in Europe.”

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

10/25-Hope for the future of mortgage rates

October 25th, 2014

Enjoy the lower rates and lower gasoline prices while you can and for as long as they last. That might be a few days, a few weeks or a few months. Or the markets might reverse themselves by the time you read this commentary.  However, good news for our nation has been seen throughout the markets which has led to an economic uplift.  Less jobless claims, lower gas prices, interest rates that are amongst the lowest that this country has been privy to since the inception of recorded mortgage loans, and a hope for even better times in the future.  It is that hope that we must all hold onto and recognize that although some may say “I remember when”, we must have the mindset of “just wait and see-things will get even better”.  For mortgage rates to become even lower, there may need to be some drastic overseas turbulence which will chase foreign investors back to the US Treasuries as their safe haven for investing.  That, or our government may require a renewed “mini stimulus package”- purchasing MBS and treasury bonds from within.  We will wait together and see……. Call ABBA First and ask to speak to Rich for any other additional information on how you may be able to save money through a mortgage from us.  We WILL treat you as we would like to be treated ourselves.

 

10-20-Refinance NOW!

October 20th, 2014

In the past two weeks, economic events around the world have caused interest rates to hit their lowest levels in more than a year. For those who are thinking about refinancing their present home or purchasing, now is the time to act as there is no way to tell how long today’s low rates will last. The markets are very volatile, so those who hesitate may miss out on a golden opportunity. Even more good news, some credit standards have loosened and home prices have increased such that some who couldn’t refinance the last time rates hit this level may be able to do so now. In addition, the government program for underwater mortgages (HARP) has been extended and may help you even if your loan balance is more than the value of your home. These rates and higher home prices may enable you to eliminate costly mortgage insurance; reduce your payments or build equity faster with a 15 year mortgage. Whatever your goals, now is the time to get a consultation with your lender and act quickly if you can benefit from today’s low rates. Note:  A consultation will take only a few minutes and it may result in significant savings. Please contact ABBA First Mortgage at 910-332-0650 quickly before the market turns again. 

Toll Free: 866.676.3349

Local: 910.332.0650

Fax: 910.332.0654