ABBA First Mortgage News

Rates are stable-after they rose and then they fell.

November 20th, 2018
Rates stabilized this week after rising the week before, but rates were falling as the survey period ended. For the week ending November 15, Freddie Mac announced that 30-year fixed rates remained at 4.94%. The average for 15-year loans rose to 4.36% and the average for five-year adjustables was stable at 4.14%. A year ago, 30-year fixed rates averaged 3.95%, close to one percent lower than today. Attributed to Sam Khater, Chief Economist, Freddie Mac — “Despite recent market volatility, rates on home loans remained steady this week. The stability in rates reflects the moderation in inflationary pressures in the economy due to lower oil prices and subdued wage growth. On the margin, lower energy costs are a positive for the home sales market, particularly for lower-middle income suburban buyers who spend proportionately more income on transportation costs.” 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.
Current Indices for Adjustable Rate Mortgages

Updated November 16, 2018

What happens when rates rise to 7 year high?

November 13th, 2018

Mortgage rates rose significantly for the week ending Nov. 8, with the 30-year fixed mortgage rate surging to a seven-year high, according to the Primary Mortgage Market Survey released by Freddie Mac.  When there is good news for the economy, there is typically bad news for mortgage interest rates.   We have seen a great improvement in economical growth since the Trump administration took over a mere 22 months ago.

“The economy continued to show resilience as strong business activity and growth in employment drove the 30-year fixed mortgage rate to a seven-year high of 4.94% – up 11 basis points from last week,” Freddie Mac Chief Economist Sam Khater said. “Higher mortgage rates have led to a slowdown in national home price growth, but the price deceleration has been primarily concentrated in affluent coastal markets such as California and the state of Washington. The more affordable interior markets – which have not yet experienced a slowdown home price growth – may see price growth start to moderate and affordability squeezed if mortgage rates continue to march higher.”

Rates for the 30-year fixed-rate mortgage averaged 4.94%, with an average 0.5 point, up from the 4.83% average in the previous period. The average rate also increased year-over-year from a 3.9% average.

The average rate for the 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) increased to 4.14%, with an average 0.3 point, from 4.04%. The 5-year ARM averaged 3.22% in the same period in 2017.

ABBA First Mortgage would like to request that new clients give us a chance to earn your business and your trust as we find the lowest rate and terms available for your needs.  Call us at 910-332-0650 and prepare to be pleasantly surprised!

Take advantage of where the rates are NOW!

November 5th, 2018

Although almost 1% higher than last year, mortgage interest rates have slighty come down this past 9 day period between October 22nd ending Nov. 1, falling back after increases in the previous period, according to the Primary Mortgage Market Survey released by Freddie Mac.

The average rate for 30-year fixed-rate mortgages fell to 4.83%, with an average 0.5 point, from 4.86%. The mortgage averaged 3.94% in the same period in 2017.  However on Novermber 2nd, we saw the rate spike up a half percent (5o+ pts).  With rates going back up and taking away all the improvement that we had been privvy to, the concensus by many industry leaders is to take advanatage of the rates that are available NOW before they climb higher and get into the range that may be outside of your comfort zone.  Call ABBA First and allow us to quote you the BEST rate that you can imagine for your needs!

Finally- rates did NOT increase this past week and the market saw a little reprieve.

October 23rd, 2018

While rates saw a slight improvement, ABBA First still has the lead in overall low rates.  Call 910-332-0650 and get the rate that you want and deserve just by asking and being approved for that rate and term.  We WANT to meet your mortgage needs and desires!

Rates fell back in the past week after several increases which brought rates to levels not seen for several years.  For the week ending October 18, Freddie Mac announced that 30-year fixed rates decreased to 4.85% from 4.90% the week before.  The average for 15-year loans fell to 4.26% and the average for five-year adjustables increased to 4.10%.  A year ago, 30-year fixed rates averaged 3.88%, close to one percent lower than today.  Attributed to Sam Khater, Chief Economist, Freddie Mac — “The modest decline in rates on home loans is a welcome respite from the rapid increase in rates the last few weeks.  While the housing market has clearly softened in reaction to the rise in interest rates, the economy and consumer sentiment remain very robust and that will sustain purchase demand, particularly in affordable markets and neighborhoods.”

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 up to highest in 7 years but ABBA First is towing the line (and the Feds might too!)

October 22nd, 2018

Last Week in Review: 
Rates hit seven-year highs midweek on the heels of a confusing Fed message.

Market_Trends_2018-10-22

Our Federal Reserve has a dual mandate – to maintain price stability (inflation) and maximum employment. They also have a 3rd “unstated” mandate, which is to maintain market calm.

This past week, the Fed came up a bit short on that “unstated” mandate and created quite a bit of confusion and market turmoil midweek upon releasing the Minutes from the Sept 26th Fed meeting.

In that meeting we learned there is a group of “hawkish” Fed Members that want to hike the Fed Funds Rate more aggressively into 2019. At the same time, there were other Fed members who think the current Fed Funds Rates is “about right” – meaning no more hikes for now. The Fed talking out of both sides of their mouth was a source of confusion for the markets and home loan rates.

Adding to the confusion is the Fed’s very own inflation forecast which suggests inflation will remain close to current levels through 2021. If we recall the Fed mandate to maintain price stability, one could argue there is no need to raise the Fed Funds Rate if inflation is not rising.

Food for thought – If the Fed’s modest inflation forecast comes to pass, we will likely see home loan rates remain near historically attractive levels.

To our clients for advertising improperly due to a clerical/posting mistake

October 16th, 2018

It had come to our attention that due to an error between the rates that we advertise and how the rate is posted online after calculations, that there was an error in the final tabulation.  It has been corrected and going forward, the rates page and the advertised rates on our advertised websites have been corrected.  We apologize to those of you that saw a rate and/or a term that was advertised this past weekend that was sadly too good to be true.  If you would like, I am willing to offer you better than market rates if you were one of those that were affected and had made yourself known to us this past Monday or Tuesday.

ABBA First 30 year rate at 4.75%- National 30 year interest rate over 5% with a half point charged to you

October 12th, 2018

Where are the shoppers that want the lowest rate with the least amount of fees to obtain that rate? They should be looking right here at ABBA First Mortgage where if you qualify, the rates are lower than the national average and the service is twice as good!  Call 910-332-0650 and take advantage of the distinct advantage that you can only find at   www.ABBAFirst.com

The volume of applications for mortgages dropped during the week ending Oct. 5 as average contract interest rates rose to record levels, according to the Weekly Mortgage Applications Survey released by the Mortgage Bankers Association (MBA).

The average contract interest rate for all mortgage types increased during the period. The 30-year fixed-rate mortgage with conforming loan balances averaged 5.05%, its highest level since February 2011, up from 4.96%, with points increasing to 0.51 from 0.49. The average for the 30-year fixed-rate mortgages with jumbo loan balances increased to its highest level since July 2011, 4.99%, from 4.93%, with points increasing to 0.35 from 0.31.

Rates for 30-year fixed-rate mortgages backed by the FHA increased to its highest level since April 2011, 4.98%, from 4.95%, with points decreasing to 0.63 from 0.80. The average for 15-year fixed-rate mortgages increased to its highest level since April 2010, 4.44%, from 4.39%, with points increasing to 0.58 from 0.50. The 5/1 ARM averaged 4.29%, its highest level since the series began in 2011, up from 4.24%, with points increasing to 0.52 from 0.48.

 

Last week interest rates were one tick down after many ticks up with many more ticks up predicted

October 10th, 2018

Rates were steady in the past week; however, they started rising again towards the end of the survey period.  For the week ending October 4, Freddie Mac announced that 30-year fixed rates decreased slightly to 4.71% from 4.72% the week before.  The average for 15-year loans was also down one tick to 4.15% and the average for five-year adjustables increased to 4.01%.  A year ago, 30-year fixed rates averaged 3.85%.  Attributed to Sam Khater, Chief Economist, Freddie Mac — “Rates on home loans inched back a little in this week’s survey, easing one basis point to 4.71 percent after hitting a seven-year high last week.  There is upside risk with regard to rates as the economy remains very robust and this is reflected in the very recent strength in the fixed income and equities markets.  However, the strength in the economy has failed to translate to gains in the housing market as higher rates have contributed to the decrease in home purchase applications, which are down from a year ago.  With interest rates expected to track higher, it’s going to be a challenge for the housing market to regain momentum.”

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.

With rates on the rise, NOW is the time to buy!

October 9th, 2018

ABBA First Mortgage will work with you to make that happen!  With our wide assortment of financing programs and several lenders in the wholesale market that we have a relationship with, the opportunity to obtain a mortgage through us could never be better.  If you have excellent credit, we will reward you for having obtained that status by reducing your rate and offering you lower points than the average market client.  Should you be struggling with your your credit scores and/or have lower than average market scores, you’ve come to the right place as well as we work with you to either obtain a mortgage immediately or work to build up your credit quickly to be able to obtain the right credit score to be able to move forward with your desires of home ownership.

We are here for you!  Call and find out how we can meet your needs.  Want a lower rate than advertised?  Call me at 910-332-0650 and ask for the owner of ABBA First Mortgage- Richard Biagini.  Let’s see if I can put something together for both of us that will create the right loan for you and have you smiling while you close your loan through my company.

CLOSED THIS SATURDAY-OCTOBER 6th

October 5th, 2018

Due to a fundraiser for our favorite charity that we sponsor as a company and support monthly, Operation Pretty Things*, the ABBA First office will be closed from 3PM on Friday Oct 5th and will not reopen until Monday Oct 8th.

*www.operationprettythings.org

Operation Pretty Things

is dedicated to LOVING and EMPOWERING women victimized by domestic violence.  Please see the full scope of how this wonderful non-profit organization comes alongside victimized women and gives them HOPE for a brighter future by clicking on the link above.