ABBA First Mortgage News

Back to RECORD LOWS ending August 6th

August 12th, 2020

For the week ending August 6, Freddie Mac announced that 30-year fixed rates fell to 2.88% from 2.99% the week before. The average for 15-year loans decreased to 2.44% and the average for five-year ARMs fell to 2.90%. A year ago, 30-year fixed rates averaged 3.60%, almost .75% higher than today. “The resilience of the housing market continues as rates on home loans hit another all-time low, giving potential buyers more purchasing power and strengthening demand. We expect rates to stay low and continue to propel the purchase market forward. However, the main barrier to rising demand remains the lack of inventory, especially for entry-level homes,” said Sam Khater, Chief Economist, Freddie Mac.

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.

Yikes! Almost 1 out of every 3 Americans didn’t pay their mortgage for the fourth straight month!

August 6th, 2020

For the fourth straight month, nearly one in three Americans missed their housing payments – but the situation could be at least temporarily alleviated through another stimulus package, according to a new study from Apartment List.

As eviction bans expire across the country, 32% of homeowners and renters failed to make their full housing payments on time, according to the study. More than 20% owed more than $1,000.

“In the first week of August, 11 percent of survey respondents made a partial payment of their monthly rent or mortgage bill, while an additional 22 percent have yet to make any payment whatsoever,” study authors Igor Popov, Chris Salviati and Rob Warnock wrote. “This continues a trend that has now lasted four months; the combined rate of missed and partial first-week payments has ranged from 30 to 33 percent going back to May.”

Each month so far, Apartment List found that many missed mortgage and rent payments were made whole with late payments by the end of the month.

The study found that 65% of homeowners with unpaid housing bills worried about facing foreclosure within the next six months, while 66% of renters in the same boat feared facing eviction within that time frame.

“With the recent expiration of most federal eviction and foreclosure protections and a lapse in expanded unemployment benefits, this insecurity is sure to deepen over the coming weeks,” the authors wrote.

At the beginning of August, 8% of homeowners had accumulated missed housing payments of under $1,000, while 11% owed between $1,000 and $2,000 and 13% owed more than $2,000, the study found. Meanwhile, 15% of renters owed their landlords less than $1,000, 11% owed between $1,000 and $2,000, and 5% owed more than $2,000.

“These accumulating missed payments affect renters and homeowners very differently,” the study said. “Some owners can defer payments through forbearance plans or even tack payments missed due to financial hardship onto the end of their loan period. Renters lack these options and the clarity that accompanies them.”

Could stimulus solve the problem?

“As congress continues to debate another round of stimulus, these data serve as an important indicator of the amount of assistance required to get Americans caught up on their housing payments (and potentially save thousands of families from losing their homes),” the study authors wrote.

According to the study, a stimulus check of $2,000 would be sufficient to meet the unpaid rent bills of 83% of renters who are currently behind on their payments. An additional $1,200 payment would alleviate half the nation’s outstanding housing debt.

“That said, a one-time payment does little to alleviate the underlying economic crisis causing this problem, so it is likely that housing debt would again accrue as widespread unemployment continues,” the study said.

From MPA on 8/6/2020

Rates are low once again, just like they were before they went up slightly

August 5th, 2020

For the week ending July 30, Freddie Mac announced that 30-year fixed rates eased to 2.99% from 3.01% the week before. The average for 15-year loans decreased to 2.51% and the average for five-year ARMs fell to 2.94%. A year ago, 30-year fixed rates averaged 3.75%, approximately 0.75% higher than today. “Rates continue to remain near historic lows, driving purchase demand over 20 percent above a year ago. Real estate is one of the bright spots in the economy, with strong demand and modest slowdown in home prices heading into the late summer. Home sales should remain strong the next few months into the early fall,” said Sam Khater, Chief Economist, Freddie Mac.

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.

As banks struggle with handling loan volume, rates edge up a bit.

July 30th, 2020

ABBA First has continued to lead the mortgage marketplace in both low rate and excellent service over the past several months since the COVID19 pandemic made its’ ugly presence known.  We’ve seen the market go up and down with rates moving in tandem based on several factors, some of which were never usually considered before.  For the week ending July 23, Freddie Mac announced that 30-year fixed rates rose to 3.01% from 2.98% the week before. The overwhelming requests for new loans has caused a bottleneck with lender’s “turn-times” slowing down.  To offset the influx of new loans which in turn would allow lenders to meet the consumer’s demand, banks simply raise their mortgage interest rates .  The average for 15-year loans increased to 2.54% and the average for five-year ARMs rose to 3.09%. A year ago, 30-year fixed rates averaged 3.75%, approximately 0.75% higher than today. “While housing demand continues to rebound, the month-long swoon in economic activity has caused the 10-year Treasury benchmark to drop. In the short-term, this means the demand will continue on the back of near record low rates on home loans. However, the most recent consumer spending data has been pointing to slow growth since mid-June. The concern is that the pause in economic activity will cause unemployment to remain elevated which will lead to longer-term labor market distress,” said Sam Khater, Chief Economist, Freddie Mac.

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.

Local housing market bounces back after Covid-19 dip

July 9th, 2020

 

 

SOUTHEASTERN, N.C. — The housing market in the Cape Fear Region has bounced back to pre-Covid-19 summer figures, according to data shared by Cape Fear REALTORS® Wednesday.

Pending sales jumped 56.1% in June year-over-year, up 15% from May.

In April, pending sales took a dip, signifying tentative behavior from buyers as the pandemic continued to impact the local economy. New listings were also down, marking the same behavior out of sellers.

May’s figures indicated sellers were acting more cautiously while buyers are scooping up new listings quickly, possibly motivated by slimmed down inventory and low mortgage rates, according to Cape Fear REALTORS®.

The most recent data from June reflects more typical levels on par with a normal summer season, erasing losses logged in the spring months.

The lack of inventory is squeezing median sale price up 6% to $264,563 in the tri-county region.

“We continue to gain traction in home sales and selling prices while our inventory is low. The pressure on limited inventory is not a new element seen in our market and is one we continue to monitor closely,” Cape Fear REALTORS® president Tony Harrington said in a press release.

Reprinted from Port City Daily News Online

Rates hitting another low

July 8th, 2020

For the week ending July 2, Freddie Mac announced that 30-year fixed rates fell to 3.07% from 3.13% the week before. The average for 15-year loans decreased to 2.56% and the average for five-year ARMs eased to 3.00%. A year ago, 30-year fixed rates averaged 3.75%, more than 0.50% higher than today. “Rates on home loans continue to slowly drift downward with a distinct possibility that the average 30-year fixed-rate loan could dip below 3 percent later this year. On the economic front, incoming data suggest the rebound in economic activity has paused in the last couple of weeks with modest declines in consumer spending and a pullback in purchase activity,” said Sam Khater, Chief Economist, Freddie Mac.

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.

Although rates were stable, concerns suggest that they may go up

June 30th, 2020
Rates for home purchases remained at record lows this week. For the week ending June 25, Freddie Mac announced that 30-year fixed rates remained at 3.13%. The average for five-year ARMs eased slightly to 3.08%. A year ago, 30-year fixed rates averaged 3.73%, more than 0.50% higher than today. Attributed to Sam Khater, Chief Economist, Freddie Mac – “After the Great Recession, it took more than ten years for purchase demand to rebound to pre-recession levels, but in this crisis, it took less than ten weeks. The rebound in purchase demand partly reflects deferred sales as well as continued interest from prospective buyers looking to take advantage of the low interest rate environment.” 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.

Although rates bumped up a bit, ABBA First remains among the lowest in Wilmington NC Mortgage Rates

June 18th, 2020

“Being competitive in today’s world amongst the industry giants has been my goal since the inception of this company” stated Rich Biagini, Owner and President of ABBA First Mortgage.  “For the last 15 years, we’ve played upon our strength of having a low overhead and strong wholesale mortgage lender relationships leading to competitive pricing and therefore low rates for our borrowers”.  See for yourself what ABBA First can do for your next mortgage loans in NC or TN by calling 910-332-0650.

For the week ending June 11, Freddie Mac announced that 30-year fixed rates moved up to 3.21% from 3.18% the week before. The average for 15-year loans remained at 2.62% and the average for five-year ARMs also was flat at 3.10%. A year ago, 30-year fixed rates averaged 3.82%, more than 0.50% higher than today. “The rebound in homebuyer demand continued this week, driven by interest rates that hover near record lows. This turnaround in demand, particularly by those who have higher incomes than the typical household, also reflects deferred sales from the Spring,” said Sam Khater, Chief Economist, Freddie Mac.

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.

“Stable improving rates” – A well defined oxymoron now-a-days in the mortgage industry.

June 3rd, 2020

For the week ending May 28, Freddie Mac announced that 30-year fixed rates moved down to 3.15% from 3.24% the week before. The average for 15-year loans decreased to 2.62% and the average for five-year ARMs fell to 3.13%. A year ago, 30-year fixed rates averaged 3.99%, more than 0.75% higher than today. “Thirty year fixed-rate loans have again hit the lowest level in our survey’s nearly 50-year history, breaking the record for the third time in just the last few months. These unprecedented rates have certainly made an impact as purchase demand rebounded from a 35 percent year-over-year decline in mid-April to an 8 percent increase as of last week—a remarkable turnaround given the sharp contraction in economic activity. Additionally, refinance activity remains elevated and low interest rates have been accompanied by a $70,000 decline in the average loan size of refinance borrowers this year. This means a broader base of borrowers are taking advantage of the record low rate environment, which will benefit the economy,” said Sam Khater, Chief Economist, Freddie Mac.

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

Rates are steady for the fourth week in a row with slight movements up and down daily

May 28th, 2020

For the week ending May 21, Freddie Mac announced that 30-year fixed rates moved down to 3.24% from 3.28% the week before. The average for 15-year loans decreased to 2.70% and the average for five-year ARMs fell one tick to 3.17%. A year ago, 30-year fixed rates averaged 4.06%, more than 0.75% higher than today. “For the fourth consecutive week, 30-year fixed-rates have been below 3.30 percent, giving potential buyers a good reason to continue shopping even amid the pandemic. As states reopen, we’re seeing purchase demand improve remarkably fast, now essentially flat relative to a year ago. Going forward, rates have room to decline as spreads remain elevated,” said Sam Khater, Chief Economist, Freddie Mac.

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.