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

Tuesday, 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

Thursday, 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.

Wednesday, 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

Thursday, 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.

Wednesday, May 20th, 2020

According to the buzz around town, low mortgage rates in Wilmington coupled with a vibrant real estate market, have prompted many people to shop for a new home even during this time when the fears of a pandemic seem to have kept most of us at home.  I know this for a fact for I sold my home just a couple of weeks ago.  It was a VA mortgage that the buyer ended up with and ABBA First offers great rates for VA loans in Wilmington.  Give us a call at 910-332-0650.

For the week ending May 14, Freddie Mac announced that 30-year fixed rates moved up two ticks to 3.28% from 3.26% the week before. The average for 15-year loans decreased one tick to 2.72% and the average for five-year ARMs rose one tick to 3.18%. A year ago, 30-year fixed rates averaged 4.07%, more than 0.75% higher than today. “Rates on home loans have stabilized at very low levels over the last few weeks as homebuyer demand slowly improves. Although purchase applications reached a new low in mid-April, today purchase demand is only down ten percent from one year ago. While demand is improving, inventory is low and declining with no signs of a turnaround yet,” 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.

Lenders offer low rates with discount points and/or origination fees

Tuesday, May 12th, 2020

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 remained near record lows in the past week, as negative economic data continued to dominate the headlines. For the week ending May 7, Freddie Mac announced that 30-year fixed rates moved up to 3.26% from 3.23% the week before. The average for 15-year loans decreased to 2.73% and the average for five-year ARMs rose to 3.17%. A year ago, 30-year fixed rates averaged 4.10%, more than 0.75% higher than today. Attributed to Sam Khater, Chief Economist, Freddie Mac – “Rates on home loans stayed at or near record lows for the fifth straight week and homeowners are taking advantage with refinance activity remaining high. Although purchase demand declined thirty-five percent year-over-year in mid-April, demand has improved modestly over the last three weeks.”

Abba First Mortgage continues to offer some of the lowest rates without points as noted on the RATES page on this website.  Please call toll free at 866-676-3349 to take advantage of some of our unadvertised specials which we offer on a daily basis.

Fixed rates moved slightly higher in the last week, remaining close to record lows.

Wednesday, April 29th, 2020

For the week ending April 23, Freddie Mac announced that 30-year fixed rates moved up slightly to 3.33% from 3.31% the week before. Although the average for 15-year loans increased to 2.86%, it is hard to find a lender that will offer that rate no matter how far and wide one may look.  The typical rate for a 15 year loan is about .25 percent less than what can be found for a 30 year rate.  Most lenders are not pushing the shorter term mortgages.  The average for five-year ARMs fell to 3.28%. A year ago, 30-year fixed rates averaged 4.20%, more than 0.75% higher than today. “Rates have stabilized over the last few weeks as the market searches for direction in the fog of economic data. While financial markets initially rallied on the news of Federal Reserve support and are improving due to the Senate’s passage of a new small business stimulus, we continue to see a deep economic contraction amidst uncertainty about the recovery formation,” 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.

Equifax, Experian and TransUnion Announce Free Weekly Credit Reports to Help Americans in Response to COVID-19

Monday, April 20th, 2020

In a joint action, the three national credit reporting agencies in the United States – Equifax (NYSE: EFX), Experian (LON:EXPN) and TransUnion (NYSE:TRU) – announce they are offering free weekly credit reports to all Americans for the next year to help them protect their financial health during the sudden and unprecedented hardship caused by COVID-19.The free reports will be available via AnnualCreditReport.com starting on April 20, 2020.

The companies’ CEOs provided a joint statement on the decision to increase their offerings for the next year. “These are unprecedented times facing the world. People are feeling scared and uncertain about the future. To help play our part and reduce some of that anxiety, we are uniting as an industry to help people know the facts about their financial data. We are making credit reports more accessible more often so people can better manage their finances and take necessary steps to protect their credit standing,” said CEOs Mark W. Begor, CEO Equifax; Brian Cassin, CEO Experian; and Chris Cartwright, CEO TransUnion.

Consumer credit reports are a factual record of credit activity and payment history used by lenders, creditors, service providers and other businesses to extend financial opportunities and other offers to people. Credit reports play an important role in financial health for consumers, businesses and the economy.

Credit vigilance is critical during these uncertain times. Consumers are advised to review their credit reports frequently to understand the information that is being reported about their payment behavior. The single most important action for consumers who cannot pay their bills right now is to talk with their lenders to find out if they are offering any assistance.

The three credit reporting agencies have also worked with their U.S. trade association, Consumer Data Industry Association, to provide guidance to data furnishers on how to support consumer credit reporting during the pandemic.

The free reports will be available by going to:

www.AnnualCreditReport.com

Rates on home loans were stable in the last week, though volatility continued from day-to-day.

Wednesday, April 15th, 2020
For the week ending April 9, Freddie Mac announced that 30-year fixed rates remained at 3.33%. A year ago, 30-year fixed rates averaged 4.12%, more than 0.75% higher than today. “While rates on home loans remained flat over the last week, there is room for rates to move down. This year the 10-year Treasury market has declined by over a full percentage point, yet home loan rates have only declined by one-third of a point. As financial markets continue to heal, we expect rates on home loans will drift lower in the second half of 2020,” 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.

How high will rates rise?

Tuesday, April 14th, 2020

As dismal as the March unemployment numbers were, we know that this is just a preview of what is to come. The question being bantered about by market analysts is — how high will unemployment become? Let’s take a look at the numbers. Let’s say 10+ million filed for unemployment in the first three weeks that the stay-at-home policies were put in place. That is a minimum of 6.0% of the workforce and would put unemployment near 10% right off the bat. The question is–how much will it rise from there?

The higher it rises, the deeper the recession will become, and the longer it will take to rise from the bottom. Unfortunately, predictions are futile at this point because we don’t know how long it will take to rid us of the virus. We know China was able to achieve such by taking decisive action very quickly. Or perhaps a drug can be found to treat the symptoms and bridge the gap until we find a vaccine.

Right now stay at home is the rule until the end of April at least. If we remain at home until June or later, a very ugly situation could get much uglier. The government stimulus programs and low rates will help. But ending our seclusion will be the real medicine our country needs. We all hope this comes sooner, rather than later. Because we don’t want the unemployment numbers to rise too far from the base we described.

Used with permission from the Origination Pro April 14th