ABBA First Mortgage News

Rates are low. ABBA First rates are lower!

August 15th, 2017

Please take the time to compare ABBA First interest rates with the national average as shown below from Freddie Mac.  Our rates are so much better and if you find something that you think is better, call us and we will meet or beat your best “deal”.

Last week, 30-year fixed rates fell to their lowest level in the past six weeks.  For the week ending August 10, Freddie Mac announced that 30-year fixed rates fell to 3.90% from 3.93% the week before.  The average for 15-year loans remained at 3.18%, and the average for five-year adjustables moved down slightly to 3.14%.  A year ago, 30-year fixed rates averaged 3.45%.  Attributed to Sean Becketti, chief economist, Freddie Mac — “After holding relatively flat last week, the 10-year Treasury yield fell 4 basis points this week. The 30-year rate on home loans moved in tandem with Treasury yields, dropping 3 basis points to 3.90 percent. Earlier last week, Federal Reserve officials highlighted the influence of continued weak inflation data on rates.”

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.

Breaking: There should still be another rate hike in 2017 – Fed official

August 14th, 2017

Federal Reserve Bank of New York President William Dudley said it isn’t unreasonable to expect the central bank to announce plans in September to start trimming its balance sheet and said he supports another interest-rate increase this year if the economy evolves as he expects.

“I would expect — I would be in favor of doing another rate hike later this year” if the economy holds up, Dudley said, speaking in an interview with the Associated Press.

Expectations for a September announcement on when the Fed will begin to wind down its balance sheet weren’t “unreasonable,” he said. A political debate over the debt ceiling is unlikely to have a “big impact” on that timetable because the central bank could announce the start of the program but delay the actual date.

“The plan is out there. It’s been, I think, generally well-received, and fully anticipated,” Dudley said of the outline for drawing down the $4.5 trillion balance sheet. “In the last FOMC statement, we said that we expected this to happen relatively soon. So, I expect it to happen relatively soon.”

Dudley’s comments signal optimism at a time when inflation remains below the Fed’s goal even as the labor market continues to expand and the overall economy is chugging along. The New York Fed chief brushed aside recent weak price data as a trend that will probably reverse, suggesting officials might be willing to look past the slowdown even as it becomes more sustained.

Selling your home and want to do so quicker and possibly make more $$$?

August 12th, 2017

Sixty-two percent of listing agents say professional staging decreases the amount of time a home spends on the market, while 40 percent of buyer’s agents say their clients are more willing to walk through a home that has been staged, according to the National Association of Realtors®’ 2017 Profile of Home Staging. “Realtors® know how important it is for buyers to be able to picture themselves living in a home, and staging a home makes that process much easier for potential buyers,” says NAR President William E. Brown. “While all real estate is local and many factors play into what a home is worth and how much buyers are willing to pay for it, staging can be the extra step sellers take to help sell their home more quickly and for a higher dollar value.”

A little rate stability after much volatility

August 8th, 2017

Rates were stable in the past week.  For the week ending August 3, Freddie Mac announced that 30-year fixed rates rose slightly to 3.93% from 3.92% the week before.  The average for 15-year loans decreased to 3.18%, and the average for five-year adjustables moved down to 3.15%.  A year ago, 30-year fixed rates averaged 3.43%.  Attributed to Sean Becketti, chief economist, Freddie Mac — “The 10-year Treasury yield was relatively flat this week, as was the rate on 30-year fixed loans, which rose 1 basis point to 3.93 percent. Despite a strong advance estimate for second quarter GDP, markets are erring on the side of caution.”

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.

Optimism abounds in the housing market

August 4th, 2017

Housing sentiment has increased for the third consecutive month after taking a dip in March. The latest Fannie Mae Home Purchase Sentiment Index (HPSI) reported a rise of 2.1 percentage points in June to 88.3 – up 5.1 percentage points year over year – due to an increase in four of the six HPSI components. “The June HPSI reading matches the previous record set in February and reflects the trend toward a sellers’ market that respondents indicated last month,” said Doug Duncan, senior vice president and chief economist at Fannie Mae. “Consumers are also growing more optimistic about their ability to get a home loan, and lenders expect credit standards to ease further going forward, as shown in our Lender Sentiment Survey. “While consumer optimism on this metric is as high as we’ve seen in the survey’s seven-year history, it’s worth noting that this record is relative to the fairly tight standards in place post-crisis when we started collecting National Housing Survey data,” Duncan said. Source: Fannie Mae

Check out rates

August 1st, 2017

Rates moved lower for the second week in a row.  For the week ending July 27, Freddie Mac announced that 30-year fixed rates fell to 3.92% from 3.96% the week before.  The average for 15-year loans decreased to 3.20%, and the average for five-year adjustables moved down to 3.21%.  A year ago, 30-year fixed rates averaged 3.48%.  Attributed to Sean Becketti, chief economist, Freddie Mac — “The 10-year Treasury yield rose 5 basis points this week, while the rate on 30-year fixed loans dropped 4 basis points to 3.92%. Home loan rates in next week’s survey would depend on how the market reacts to the Fed’s balance sheet unwinding announcement.”

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 holding steady with a minimal improvement last week

July 31st, 2017

Mortgage rates saw a slight decrease during the week as the Federal Open Market Committee decided to keep rates steady, according to Bankrate.com’s weekly national survey.

The survey found the rate for the benchmark 30-year fixed mortgage fall to 4.09% from 4.11% a week ago. On average, discount and origination points for this mortgage type was 0.24. The 15-year fixed mortgage saw its average rate unchanged from last week at 3.31%. It had 0.18 average discount and origination points.

While the rate for jumbo 30-year fixed mortgage rose to 4.08%, rate changes for adjustable mortgages were mixed. The rate for 3-year ARM climbed to 3.52%, the 5-year ARM rate slid to 3.50% and the 3.91% rate for the 10-year ARM was unchanged from a week ago.

According to Freddie Mac’s survey, rates saw decreases for the second week in a row. The rate was 3.92% for 30-year fixed-rate mortgages, with an average 0.5 point, for the week ending July 27. This compares to an average rate of 3.96% a week ago. The 15-year fixed-rate mortgage had an average rate of 3.20% with an average 0.5 point, a decline from last week’s 3.23% average. For the 5-year Treasury-indexed hybrid ARM, the average rate was 3.18% with an average 0.5 point, falling from 3.21% a week ago.

“The 10-year Treasury yield rose 5 basis points this week while the 30-year mortgage rate dropped 4 basis points to 3.92 percent. Mortgage rates in next week’s survey would depend on how the market reacts to the Fed’s balance sheet unwinding announcement,” said Sean Becketti, chief economist at Freddie Mac.

Bankrate.com said rates initially saw gains driven by strong corporate earnings and a rising stock market.  However, the rates slid back near last week’s levels following Fed’s concerns about low inflation.

Small swing towards better rates last week

July 25th, 2017

Rates moved back down last week after rising the previous two weeks.  For the week ending July 20, Freddie Mac announced that 30-year fixed rates fell to 3.96% from 4.03% the week before.  The average for 15-year loans decreased to 3.23%, and the average for five-year adjustables moved down to 3.21%.  A year ago, 30-year fixed rates averaged 3.45%.  Attributed to Sean Becketti, chief economist, Freddie Mac — “Continued economic uncertainty and weak inflation data pushed rates lower this week. The 10-year Treasury yield fell 5 basis points this week. The rate on 30-year fixed loans moved with Treasury yields, dropping 7 basis points to 3.96%.”

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.

Does pulling your credit report hurt your scores?

July 18th, 2017

This is a reprint of an article that I find to be most useful when answering the question of credit scoring with multiple pulls of your credit report:

It seems that a leading objection borrowers have when you ask them to complete a full application is: “Don’t pull my credit, I don’t want my scores to drop.” I have had countless conversations about how multiple inquires for home loans affect the borrower’s FICO scores. Some have argued that you only have 14 days to shop, others say 30 days, and some even have indicated that every inquiry counts no matter what the bureaus say. Today I am not only putting the question to bed, I will give you a tool that you can send your borrowers when they disagree.

In short, consumers have 45 DAYS to shop for a home loan. FICO, the leading score provider and sole provider of scores for Fannie and Freddie has done extensive research in order to develop what is called the deduplication window, aka dedupe window, aka shopping window. What this means is that consumers can shop multiple lenders for home, auto and student loans within a 45-day period with the first inquiry being considered the only inquiry that impacts the scores. The information FICO provides on this topic is quite detailed and may confuse those that are not technical. –Dave Hershman

Rates continue to trend slightly upwards

July 18th, 2017

Although rates moved up for the second week in a row, ABBA First Mortgage is still holding the line on keeping them low.  For the qualified buyer, we offer the rate of 3.75% with no points.  At all times, we offer better than market rates for better than market people.  For the week ending July 13, Freddie Mac announced that 30-year fixed rates rose to 4.03% from 3.96% the week before.  The average for 15-year loans increased to 3.29%, and the average for five-year adjustables moved up to 3.28%.   A year ago, 30-year fixed rates averaged 3.42%.   Attributed to Sean Becketti, chief economist, Freddie Mac — “After fully absorbing the sharp increases in Treasury yields over the past couple of weeks, the rate on 30-year fixed loans has cleared the psychologically important 4 percent mark for the first time since May.  Today’s survey rate stands at 4.03 percent, up 7 basis points from last week.”

 

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.