ABBA First Mortgage News

ABBA First offers a 3.5%, 30 year fixed rated for qualified borrowers!

April 22nd, 2017

Rates on 30-year fixed loans fell below the 4.0% mark this past week for the first time this year. For the week ending April 20, Freddie Mac announced that 30-year fixed rates fell to 3.97% from 4.08% the week before. The average for 15-year loans decreased to 3.23%, and the average for five-year adjustables moved down to 3.10%. A year ago, 30-year fixed rates averaged 3.59%. Attributed to Sean Becketti, chief economist, Freddie Mac — “The rate on 30-year loans fell 11 basis points this week to 3.97%, dropping below the psychologically-important 4.0% level for the first time since November. Weak economic data and growing international tensions are driving investors out of riskier sectors and into Treasury securities. This shift in investment sentiment has propelled rates lower.

ABBA First rates are amongst the lowest in the industry.  Please give us a call and take advantage of the sopecial pricing that we are offering.

 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.

Abba First has a 3.75% interest rate for 30 years.

April 21st, 2017

Mortgage rates below 4 per cent

The average 30-year mortgage rate has dropped below 4 per cent and is at its lowest level since November 2016.
The Freddie Mac Primary Mortgage Survey shows that a 30-year fixed rate mortgage averaged 3.97 per cent for the week ending April 20, down from 4.08 per cent a week ago.

The 15-year FRM average was 3.23 per cent, down from 3.34 per cent a week ago; and the 5-year ARM averaged 3.10 per cent, down from 3.18 per cent.

“Weak economic data and growing international tensions are driving investors out of riskier sectors and into
Treasury securities,” explained Freddie Mac chief economist Sean Becketti. “This shift in investment sentiment has propelled rates lower.”

Check out the better han market interest rates that ABBA First offers.  If qualified, you will be pleasantly surprised with how much money you can save by obtaining your next mortgage through ABBA First.  30 year rates as low as a fixed 3.5% interest rate!

Mortgage payments more affordable than renting

April 14th, 2017

The crisis in rent affordability also has made it increasingly difficult for renters across all racial communities to save for a downpayment for a home purchase. Housing prices have risen 76 percent since 2000, while the increase in per capita disposable income over that period lagged behind at 72 percent, according to data from Freddie Mac.

“With inventory tight, home prices outpacing incomes and interest rates headed higher, affordability has declined, putting a pinch on prospective homebuyers,” a recent Freddie Mac report states.

As housing costs continue to spiral upward, renters are forced to make hard financial choices, “like putting off saving for a downpayment, medical care and planning for retirement,” the Zillow report states. “Homeownership can be an important path to building wealth, but making the transition from renter to homeowner is a bigger financial challenge for renters living in mainly black or Hispanic areas,” Zillow concludes.

On the bright side, for those renters who do manage to make the transition to homeownership, monthly mortgage payments prove to be much more affordable than rents, regardless of race. Mortgage payments for homeowners in black communities account for 13.6 percent of median household income and 22.8 percent in Hispanic communities, Zillow reports. In white communities, 15.2 percent of median household income goes toward paying the mortgage each month.

Bill Conroy is managing editor at Scotsman Guide Media. He can be reached at billc@scotsmanguide.com.

Slowly they step (down for now- speaking of mortgage interest rates)

April 11th, 2017
  • Rates moved down for the third week in a row, though the data was released before the employment report was issued.
  • For the week ending April 6, Freddie Mac announced that 30-year fixed rates fell to 4.10% from 4.14% the week before.
  • The average for 15-year loans decreased to 3.36%, and the average for five-year adjustables moved up slightly to 3.19%.
  • A year ago, 30-year fixed rates averaged 3.59%.
  • Attributed to Sean Becketti, chief economist, Freddie Mac — “The 10-year Treasury yield was relatively unchanged this week, while 30-year fixed rates fell 4 basis points to 4.1 percent. After three straight weeks of declines, the 30-year fixed rate is now barely above the 2017 low. Next week’s survey rate may be determined by Friday’s employment report and whether or not it can sustain the strength from earlier this year.”

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.

Interesting tidbit of information!

April 5th, 2017

An extra bedroom increases mortgage by 50 per cent…

Moving house to gain an extra bedroom can increase mortgage payments by as much as 50 per cent, Zillow research shows.

Going from a 2-bedroom to a 3-bedroom home means an increase nationally of $447 per month for mortgage payments; in some coastal markets it could mean an extra $500 and in the hottest markets homebuyers could need an extra $1,600 a month!

Chicago, Cincinnati and St. Louis are kinder on the budgets of growing households with an extra bedroom adding just $150 to monthly mortgage costs. Cleveland has the lowest additional cost though at $74.

Allow ABBA First Mortgage to work through your estimated mortgage payment increase and as we offer you our services to ensure you of making right mortgage choices.

What’s happening with the long term interest rates?

April 4th, 2017

 

  • Rates moved down for the second week in a row, coinciding with a weaker stock market.
  • For the week ending March 30, Freddie Mac announced that 30-year fixed rates fell to 4.14% from 4.23% the week before.
  • The average for 15-year loans decreased to 3.39%, and the average for five-year adjustables moved down to 3.18%.
  • A year ago, 30-year fixed rates averaged 3.71%.
  • Attributed to Sean Becketti, chief economist, Freddie Mac — “The 10-year Treasury yield remained relatively flat this week. The rate on 30-year fixed loans fell 9 basis points to 4.14 percent, another significant week-over-week decline. Despite recent interest rate fluctuations, new home sales far exceeded expectations in February and jumped 6.1 percent to an annualized rate of 592,000.”

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.  ABBA First Mortgage offers lower than the average market rate for clients that qualify with better than market credit scores.

Mortgage rates tumbled for the second week in a row as long term bond yields fell to their lowest levels in a month.

April 3rd, 2017

According to the latest data from Freddie Mac, the 30-year fixed rate average slid to 4.14 percent from 4.23 percent the week prior. The failure by Congress to pass health care legislation fueled the move by investors from stocks to bonds, driving down yields. Even as mortgage rates fell sharply, refinancing activity did not pick up. In fact, it continued to decline. Week-over-week, applications to refinance a home fell by 3 percent. Refinancing as a percentage of total applications fell to 44 percent, the lowest level since October of 2008. Mortgage bankers are feeling the pinch of less refinance business, and some predict they will, in turn, have to get more competitive on the purchase side to make up for the lost business. That could lead to a slight easing in today’s tight credit conditions. This is a great time to call ABBA First Mortgage and obtain the rate that you’ve been waiting for.

 

Values of homes are going up

March 31st, 2017

About 63 percent of all homeowners saw their equity increase last year. “Average home equity rose by $13,700 for U.S. homeowners during 2016,” says Frank Nothaft, chief economist for CoreLogic. “The equity build-up has been supported by home price growth and pay down of principal. Further, about one-fourth of all outstanding home loans have a term of 20 years or less, which amortize more quickly than 30-year loans and contribute to faster equity accumulation.” “Home equity gains were strongest in faster-appreciating and higher-priced home markets,” says Frank Martell, president and CEO of CoreLogic.

Who would’ve thunk? Goes to show that nobody has a crystal ball in this industry!

March 25th, 2017

Rates bounced back down in the past week, not unusual for a week after the Fed raises rates, because the markets had moved up in anticipation of the action and there were no surprises.  Although the following are averages from all lending sources, ABBA First Mortgage offers a lower rate than the market place.  Read on and call us to find out how you can take advantage of these savings..

For the week ending March 23, Freddie Mac announced that 30-year fixed rates fell to 4.23% from 4.30% the week before. (ABBA First was 4.0% with no points for the qualified borrower).  The average for 15-year loans decreased to 3.44%, and the average for five-year adjustables moved down to 3.24% compared to ABBA First at 3.125%.  A year ago, 30-year fixed rates averaged 3.71%. Attributed to Sean Becketti, chief economist, Freddie Mac — “The 10-year Treasury yield fell about 10 basis points this week. The average rate on 30-year fixed loans moved with Treasury yields and dropped 7 basis points to 4.23 percent. This marks the greatest week-over-week decline for the 30-year rate in over two months, a stark contrast from last week’s jump following the FOMC 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.

Look for improved credit scores soon!

March 24th, 2017

12 million consumer credit scores about to go up!

Millions of consumers may soon see their credit scores go up, clearing the way for some prospective borrowers to qualify for mortgages. But the move could also raise risks for lenders.

The three major credit-reporting agencies – Equifax, TransUnion and Experian – have decided to take many tax liens and civil judgments off of people’s credit reports, according to a Wall Street Journal report. The data will be removed starting around July 1, in a move that could affect up to 12 million consumers.

According to the Journal, the credit-reporting agencies will remove tax-lien and civil-judgment data if it doesn’t include at least three data points: the consumer’s name, address and either a Social Security number or date of birth.

“The result will make many people who have these types of credit-report blemishes look more creditworthy,” the Journal reported.

The move comes shortly after the Consumer Financial Protection Bureau released a report dinging the credit-reporting agencies for problems including using inadequate identity-matching criteria on the information they collect.

According to a 2013 Federal Trade Commission study, one in five consumers has an error in at least one of their credit reports. According to the Journal, Equifax, TransUnion and Experian received a combined total of around 8 million disputes about information on credit reports in 2011.

The removal of tax-lien and civil-judgment data from credit reports could encourage more consumers to borrow. But it could also increase the risks for lenders, who might not be able to determine borrowers’ default risk accurately enough. Consumers with lien or judgments are twice as likely to default on loan payments, according to the Journal.

“It’s going to make someone who has poor credit look better than they should,” John Ulzheimer, credit specialist and former manager at Experian, told the Journal. “Just because a lien or judgment has been removed and someone’s score has improved doesn’t mean they’ll magically become a better credit risk.”

By Ryan Smith from MPA on 3/24/2017