ABBA First Mortgage News

30 year mortgage rates on the rise

“If you’re ever going to refinance your home, NOW is the time to do it.  With indicators pointing to rates on the rise in 2021, why wait?  If your looking for low interest rates in Wilmington, NC for refinancing or low rates for purchasing of a new home whether it be a primary, second home or investment property in NC or TN, call ABBA First Mortgage at 910-332-0650 and be treated to our excellent service known throughout all of NC and TN.  You’ll be pleasantly surprised by the level of superior excellence in processing your loan and with regard to our rates and terms- we are second to none.  Check us out at   www.abbafirst.com   or email me,    richsr@abbafirst.com    for your personal quote.”  Rich Biagini Sr.

American homeowners will refinance home loans worth nearly $1.8 trillion this year as they lock in historically low rates. However, the window of opportunity for refinancing into super-cheap loans could be closing. Many housing economists now expect rates on home loans to edge up gradually from recent record lows. Mike Fratantoni, chief economist at the Mortgage Bankers Association (MBA), said that he expects the average rate on a 30-year loan to rise to 3.5 percent by the end of 2021. If the scenario plays out as he predicts, refinancing will lose its appeal for many homeowners. The MBA expects refi volume to fall to $946 billion in 2021 and to $573 billion in 2022.

“Looking back on this, years from now, you will remember 2020 as an absolute banner year for this industry,” Fratantoni said. A 3.5 percent home loan is still low by historical standards. However, it would be high enough that far fewer homeowners would be enticed into refinancing. A key assumption in the MBA’s forecast is that the U.S. economy will continue its robust recovery. Unemployment soared to 14.7 percent in April but fell to 7.9 percent as of September. Fratantoni expects unemployment to continue to decline, hitting 7.5 percent this year and 6 percent next year. That’s still high, but well below the calamitous levels of joblessness early in the coronavirus crisis. A worldwide wave of stimulus packages also plays into the forecast. The U.S. government has spent trillions of dollars on such stimulus initiatives as generous unemployment benefits and forgivable loans to employers.

Source: BankRate

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