ABBA First Mortgage News

ABBA First rates remain lower than the average rates in the state

June 20th, 2017

Rates were up slightly last week, remaining near their lowest levels of the year.  For the week ending June 15, Freddie Mac announced that 30-year fixed rates rose two ticks to 3.91% from 3.89% the week before.The average for 15-year loans also rose slightly to 3.18%, and the average for five-year adjustables moved up to 3.15%. A year ago, 30-year fixed rates averaged 3.54%. Attributed to Sean Becketti, chief economist, Freddie Mac — “The rate on 30-year loans rose 2 basis points over the week to 3.91 percent. However, our survey was conducted before investors drove Treasury yields sharply lower in a reaction to the surprisingly weak CPI release. If that drop in yields sticks, rates on home loans are likely to follow in next 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

Possible removal of tax liens and judgements from credit reports is coming!

June 15th, 2017

Looking forward, there are changes coming to the credit reporting industry.  We should expect to see these changes happen with regard to judgment and lien purging starting July 1st. A release from TransUnion gives some insight about what to expect:

  • Based on feedback, most Bankruptcy information will meet the minimum reporting requirements, so don’t expect those to go away.
  • The new standards will apply to both new and existing public record data.
  • Minimum identifier data required: Name, Address, SS and or DOB
  • Minimum frequency courthouse visits to obtain newly filed data: 90 Days
  • The average credit score will increase approximately 10 points

It is estimated that 60% of tax lien information will be removed from credit reports and ALL civil judgment records will be removed!

When it will roll out: During the week of July 10, 2017, the CRAs will remove from their databases previously collected public record data that does not meet the enhanced standards.

This is the start of good news for many that have been hoping to see an improved credit score due to judgements that have been levied against their credit.  Please knwo that ABBA First Mortgage will work with you and a credit consultant to ensure that you are able to take advantage of any improvement that you may be entitled to.

Federal Reserve raises short term interest rates

June 14th, 2017

As widely predicted, the Federal Reserve announced today that it would raise interest rates by a quarter of a percent.

“In view of realized and expected labor market conditions and inflation, the Committee decided to raise the target range for the federal funds rate to 1 to 1-1/4 percent,” the Federal Open Market Committee said in a statement. “The stance of monetary policy remains accommodative, thereby supporting some further strengthening in labor market conditions and a sustained return to 2 percent inflation.”

The hike marks only the fourth time in a decade the Fed has raised its benchmark interest rate. The last hike came in March, with the central bank holding rates steady at its May meeting.

Today’s hike was widely expected by analysts. However, questions remain about whether the Fed will continue its plan of further hikes this year.

“Fed officials predicted three increases at the beginning of the year, but inflation has weakened in recent months,” Binyamin Appelbaum wrote in an analysis for the New York Times. “Investors will be looking for signs that the Fed is no longer quite so confident that the economy is ready for higher rates.”

The FOMC said in its statement that it “expects that economic conditions will evolve in a manner that will warrant gradual increases in the federal funds rate.” However, “the federal funds rate is likely to remain, for some time, below levels that are expected to prevail in the longer run.”

Might we see another refi boom?

June 13th, 2017

While most observers agree that the Fed will hike rates at its meeting Wednesday, one analyst says that hike might be the last one we see for years.

In a blog for the Institutional Risk Analyst, Christopher Whalen wrote that with the economy slowing and credit losses rising, the Fed will have to stop its rate hikes and prepare for deflation.

“Wall Street desperately wants to believe that interest rates are headed higher, part of a larger need to confirm that the current market and economic situation is returning to normal,” Whalen wrote. “Yet fact is, after eight years of monetary experimentation by (former Fed chair Ben) Bernanke, (current chair Janet) Yellen & Co, interest rates are falling, debt markets are at record levels of issuance and the new-issue equity markets are largely barren of value.”

Whalen wrote that the economy was in a “credit bubble” – and even intimated that the Fed might have to start lowering rates again.

“Not only has US public debt almost doubled since 2008, but private debt has likewise risen by double-digit rates,” he wrote. “The slowly rising cost of credit visible in banks and the bond market may herald the start of a new type of debt deflation cycle.”

According to Whalen, that means the June rate hike will be the last one for the year – and maybe longer.
“Thus we expect June to be the last rate hike by the Fed in 2017 and perhaps for years to come,” he wrote.

Slight improvement for weekly mortgage interest rates

June 12th, 2017

Rates continue to remain amongst the lowest in history over the last 60 years.  At the end of last week, the Conforming Fixed 30-year rate leveled out at around 3.78 percent, while the Conforming Fixed 15-year rate finished at around 3.07 percent. Standard 5/1 ARM rates were hovering around 3.05 percent.  And for you bond traders, the Ten-year treasury yield was up 2 basis points and ended at 2.19 percent last week.

Credit scores soon to improve for millions of buyers

June 10th, 2017

If you’ve heard that some people might get a boost to their FICO credit scores — without having to do anything — you’re right. According to a new study of 30 million credit files by score developer FICO, many Americans will experience bumps in the coming months, mainly modest increases of less than 20 points. But hundreds of thousands of the increases will be super-sized — in the range of 40 to 60 points and higher. That’s because, as part of an agreement with state attorneys general, in early July the three national credit bureaus will stop collecting public information on virtually all civil judgments and roughly half of all tax liens. Equifax, Experian and TransUnion have determined that the accuracy of the public records in these areas does not meet their standards. That means the wrong people too often got tagged with issues that affected their ability to get the terms they deserved. But unanswered questions remain: How many credit files contain civil judgment or tax liens, erroneous or otherwise? After all, though many consumers’ credit files include bad information, other consumers face legitimate judgments and liens. So, some applicants’ credit scores may be artificially inflated. Examining giant samples of credit files supplied by the credit bureaus, FICO estimated that between 12 million and 14 million Americans have judgments or tax liens listed that could be affected by the changes. When these items are purged, their FICO scores tend to jump. Most of the affected consumers’ files had score increases between 1 and 19 points — not a big deal. But between 1 million and 2 million consumers appear to be in line for score boosts of 20 points to 39 points. At least 300,000 people could see increases of 60 points or higher, simply because negative information will be expunged from their files. Source: Ken Harney, The Nation’s Housing

Were rates supposed to go up?

May 31st, 2017
  • Rates were down last week to their lowest level of the year.
  • For the week ending May 25, Freddie Mac announced that 30-year fixed rates fell to 3.95% from 4.02% the week before.
  • For the right loan and for those that qualify, ABBA First is offering a rate of 3.875%.
  • The average for 15-year loans decreased to 3.19%, and the average for five-year adjustables moved down to 3.07%.
  • A year ago, 30-year fixed rates averaged 3.64%.
  • Attributed to Sean Becketti, chief economist, Freddie Mac — “As we predicted, the rate on 30-year fixed loans fell 7 basis points this week in a delayed reaction to last week’s sharp drop in Treasury yields. The survey rate stands at 3.95 percent today, a new low for the year.”
  • Before rates get away and the market possibly reverses direction, call me today- Rich at ABBA First Mortgage at 910-332-0650 ext 101.

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.

Will the mortgage industry slow down due to rising rates? Part 1 of 3

May 24th, 2017

Everyone likes to see sales and profits go up, but for 2017 the mortgage industry is likely to face a marketplace erosion.

A big part of the problem — but surely not all — comes from the folks at the Federal Reserve. They’re determined to raise interest rates, a path toward higher costs for lenders and borrowers, which will surely lead to fewer mortgage originations.

It should be noted that while the Fed controls bank rates, it does not directly control mortgage rates. That’s the theory. In practice, says The New York Times, “when the Fed’s rate goes up, banks find ways to pass their higher borrowing costs along to consumers.”

Higher costs are baked into mortgage rate predictions for 2017. The Mortgage Bankers Association says mortgage rates are likely to close at 4.7% by New Year’s while the National Association of Realtors puts the number at 4.6%. The National Association of Home Builders says we should average 4.5% for the year while Fannie Mae predicts average rates of 4.3% by the fourth quarter.

Tomorrow you can read what borrowers’s thoughts are on this timely news of predicted mortgage interest rates in the future.  However, today is the day that if you’re considering a mortgage, please take advantage of the rates while they are still hovering at all time lows.  Call ABBA First Mortgage at 910-332-0650 and let’s determine the best option for you and your mortgage needs.  Purchasing, getting cash out or refinancing to a better scenario, you need to make a move soon before this low rate market gets away.

What are mortgage interest rates doing?

May 23rd, 2017
  • Rates were down slightly last week, but the survey data did not include a big drop in rates on Wednesday of last week.
  • For the week ending May 18, Freddie Mac announced that 30-year fixed rates fell to 4.02% from 4.05% the week before.
  • Sadly, we have seen a rate increase this week with the trend poised for higher rates if we continue on this same path.
  • The average for 15-year loans decreased slightly to 3.27%, and the average for five-year adjustables moved down one tick to 3.13%.
  • A year ago, 30-year fixed rates averaged 3.58%. Attributed to Sean Becketti, chief economist, Freddie Mac — “The rate on 30-year fixed loans fell 3 basis points this week to 4.02 percent. However, this week’s survey closed prior to Wednesday’s flight to quality. The delayed impact of the associated decline in Treasury yields may push rates lower in next 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.

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.

Making VA loans more competitive in the market

May 16th, 2017

The Department of Veterans Affairs is considering making changes to its fee limitations so that veterans can be more competitive in bids for homes. VA’s Loan Guaranty Service is reviewing its regulations governing the allowable expenses that a veteran can pay or be charged in connection with obtaining a VA-guaranteed loan. In 1954, the VA allowable fees rule was revised to restrict the types of charges and fees veterans were allowed to pay in order to protect them from junk fees. Currently, the 1954 rule is still in place, though some specific fees have been modified. A 1 percent origination is allowed as long as none of the other fees on the schedule are charged. But fees are relatively limited, leaving sellers and lenders to pay other fees themselves. While the rule has protected many veterans from unreasonable closing costs, the home-buying process has more recently seen significant changes. “In recent years, some veterans and their representatives have complained to VA that certain provisions of the rule can be detrimental to a veteran’s bargaining position during real estate negotiations,” the filing stated. “These parties have asserted that VA-guaranteed loan borrowers are sometimes unable to compete with others whose financing options are not restricted by similar regulatory constraints.” The agency acknowledges that in some cases, the fee limitations have led sellers to accept other offers, while in other cases, lenders have raised interest rates to make up for the costs. So, VA is considering ways to revise the list of acceptable charges and fees specified by the schedule and is seeking comments on how the public believes it should approach this undertaking. The department has outlined areas it seeks feedback for in an April 13 Federal Register filing. The deadline for submitting a comment is June 12. Source: Mortgage Daily