ABBA First Mortgage News

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Mortgage interest rates inching up again. Economists suggest not to wait for better rates.

Tuesday, December 10th, 2019

We’re in December and closing in on one of my favorite holidays, Christmas which is a precursor to the New Year. Several borrowers would like to close their loans before the end of the year to take advantage of tax laws and how the laws affect them with their overall tax earnings and deductions.  Today is December 10th and it’s up to you to get your loan inquiry in within a couple of days to possibly be able to join those who are in this group of looking forward to keep what they can in their pockets rather than in the government’s vaults.

Although rates were fairly stable this past week ending on December 5th, today is a different story.  Rates have begun the worsening that we had dreaded over the many weeks that we continued to see them improve.  The request to LOCK in your rate ASAP is out there for all to see.  Let’s hope there is a change in the direction of where the rates are heading and that you too can take advantage of the lowest rates in the history of the mortgage market.  Several actions would have to happen to see improving rates once again.  Please call us at 910-332-0650 and let’s talk about where the rates are today and what you might be able to obtain for your particular loan scenario.

[For the week ending December 5, Freddie Mac announced that 30-year fixed rates remained at 3.68%. The average for 15-year loans moved down one tick to 3.14% and the average for five-year ARMs moved down to 3.39%. A year ago, 30-year fixed rates averaged 4.73%, more than 1.0% higher than today. Attributed to Sam Khater, Chief Economist, Freddie Mac –“This week the economy sent mixed signals, leaving rates on home loans unchanged. Survey data for manufacturing and service industries varied while construction spending fell modestly. However, homebuyer demand continued to improve, rising eight percent. Clearly homebuyers remain bullish on the real estate market.”]

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.  [Taken from Origination Pro Update-The Hershmann Group]

From the lows of last week to “Going up!”

Wednesday, December 4th, 2019
For the week ending November 27, Freddie Mac announced that 30-year fixed rates rose to 3.68% from 3.66% the week before. The average for 15-year loans remained at 3.15% and the average for five-year ARMs moved up to 3.43%. A year ago, 30-year fixed rates averaged 4.81%, more than 1.0% higher than today. “Following a decline in the first nine months of 2019, rates on home loans have traded narrower during the last two months with a modest drift upward due to an improved economic outlook. While there has been a lag in the housing market’s response to lower rates, real estate volumes have clearly shifted into a higher gear. Moreover, the recent improvement in the cyclical segments of the economy and easing financial conditions will provide a gentle tailwind to the real estate market rebound over the next few months,” 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.

Even with rates slightly higher, refinancing of mortgages should continue throughout 2020

Monday, November 18th, 2019

Homes that were purchased with rates of 4.5% or higher still may have a wonderful chance of refinancing through ABBA First Mortgage and SAVING money over the life of their loan (even with any closing costs that may have been collected!  But don’t delay- call today as rates are ticking up and we don’t know if we’ll see that spike down to new lows that some investors are hoping for.  If we do, ABBA First will offer their clients a “NO COST OUT OF POCKET REFINANCE” to those that have refinanced recently to bring their rates down and are now looking to do the same once again!  It’s true, and many previous borrowers of ABBA First will attest to how the program works and how it is truly a money saving option for those who are looking to capture their lowest mortgage rate possible!  But refinance now and avoid what the market has been experiencing recently.

Despite a slight uptick in mortgage rates, applications for home loans climbed last week to their highest level in over a month.

Data from the Mortgage Bankers Association showed that overall mortgage application volume grew 9.6% on a seasonally adjusted basis and 9% on an unadjusted basis week over week.

“Positive data on consumer sentiment and growing optimism surrounding the US and China trade dispute were behind last week’s rise in the 30-year fixed mortgage rate to 4.03%,” said Joel Kan, associate vice president of economic and industry forecasting at MBA.

Refinance applications jumped 13% week over week to the highest level in five weeks. Meanwhile, the purchase index was up 5% seasonally adjusted and 2% unadjusted from the week before.

“With rates still in the 4% range, we continue to expect to see moderate growth in refinance activity in the final weeks of 2020,” Kan said.

The refinance share of mortgage activity rose to 61.9% of total applications from 59.5% from the prior week. The adjustable-rate mortgage (ARM) share of activity, on the other hand, shrank to 4.9% of total applications.

The FHA loans comprised 13.1% of total applications, up from 11.8%. The VA share of total applications inched up from 12% to 12.7%, while the USDA share dipped from 0.6% to 0.5%.

“Last week was a solid week for homebuyers,” Kan said. “Purchase applications increased 2% and were 15% higher than a year ago. Low supply and high home prices remain a key characteristic of this fall’s housing market, which is why the largest growth in activity continues to be in loans with higher loan balances.”

Why I believe that rates may continue to go down

Tuesday, November 12th, 2019

Many economists are predicting somewhat of a mild recession in 2020. However, their predictions are not unanimous and those who believe the economy will continue to grow are pointing to the real estate sector having the potential to keep us out of a recession. Certainly, we can see the economy has slowed when you consider that the last six months the economy has grown by around 2.0%. It is quite apparent that the positive effects of the tax overhaul were temporary, at least in this regard.

The last recession was led by a contracting real estate market. Thus, it would be quite a turnaround if real estate bolstered this economy just enough to keep us out of the next recession. Yes, the economy is slower, but that does not necessarily mean that it will slip into negative territory. The weaker economy is the factor which has caused interest rates to fall more than expected. And those lower rates are the biggest factor bolstering real estate. Rates fell back last week after rising for three straight weeks. For the week ending November 7, Freddie Mac announced that 30-year fixed rates fell to 3.69% from 3.78% the week before. ABBA First follows the trend by keeping in step with the market movement although the radical pricing is typically found on the west coast and priced in other markets such as Florida where the rates are slightly lower than the rest of the USA.

Real estate has also been given a boost by increased household formulation. The Census Bureau recently reported that nearly 1.5 million households were formed in the past year. That formulation is increasing demand for housing nationwide. And lower rates have made owning more affordable. That is a good combination, and if it holds, a factor which might boost the economy by just enough.

Third week in a row that mortgage rates go up

Monday, November 4th, 2019

Mortgage rates have increased for the third week in row, with the 30-year fixed-rate mortgage rising three basis points from the prior week.  ABBA First Mortgage has kept their rates very steady from week to week and will continue to hold the line for as long as they have the ability to do so.  However compared to nearly a year ago, we are better than then by more than 1% in both the 30 and the 15 fixed year mortgages.

The Freddie Mac Primary Mortgage Market Survey showed that the upswing pushed the 30-year Fixed RateMortgage up to 3.78% from 3.75%. A year ago, the 30-year FRM averaged 4.83%.

“This week marks the third consecutive week of rate increases, which hasn’t happened since April of this year,” said Sam Khater, Freddie Mac’s Chief Economist. “That said, purchase activity continues to show strength, indicating obvious homebuyer demand.”

However, Khater also said that the shortage in housing supply remains a major drawback to the housing market and even the overall economic recovery.

Meanwhile, the 5-year Treasury-indexed hybrid adjustable-rate mortgage climbed to 3.43% from 3.4% the week before and 4.04% a year ago.

Rates have moved up again-but just slightly.

Thursday, October 24th, 2019

For the week ending October 17, Freddie Mac announced that 30-year fixed rates rose to 3.69% from 3.57% the week before. The average for 15-year loans increased to 3.15% and the average for five-year ARMs remained at 3.35%. A year ago, 30-year fixed rates averaged 4.85%, more than 1.00% higher than today. “Despite this week’s uptick in rates, the housing market remains on the upswing with improvement in construction and home sales. While there has been a material weakness in manufacturing and consistent trade uncertainty, other economic trends like employment and homebuilder sentiment are encouraging,” said Sam Khater, Chief Economist, Freddie Mac.

ABBA First has tried to hold the line for our NC and TN friends as we’ve priced ourselves amongst lowest providers of mortgage lenders in the southeast.  Should you have the need for cash out to consolidate your debts or send a student off to school, now is the time to take advantage of the equity in your home by refinancing at today’s low rates.  Call 910-332-0650 and let’s take your application over the phone to start the pre-approval process right away while the “getting is still good”!

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.

Mortgage rates go up an eighth last week but the 30 year fixed rate mortgage is still in the mid 3’s for clients w/ good credit!

Friday, October 18th, 2019

Mortgage rates jumped more than 10 basis points from last week, according to new data from Freddie Mac.

The 30-year fixed-rate mortgage (FRM) edged up from last week’s 3.57% to 3.69%, according to the Freddie Mac Primary Mortgage Market Survey. However, it is still 1.16% lower than last year’s 4.85%.

Freddie Mac Chief Economist Sam Khater said there’s no need for homebuyers to panic just yet.

“Despite this week’s uptick in mortgage rates, the housing market remains on the upswing with improvement in construction and home sales,” Khater said. “While there has been a material weakness in manufacturing and consistent trade uncertainty, other economic trends like employment and homebuilder sentiment are encouraging.”

Additionally, the 15-year FRM rose to 3.15% from last week when it averaged 3.05%. A year ago, the 15-year FRM was 4.26%.

Meanwhile, the 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) remained unchanged at 3.35%. At this time last year, the 5-year ARM was 4.10%.

At this time it would be wise for all borrowers who are considering to refinance their homes to set the table and apply now.  Should the market allow ABBA First to squeeze a little more at the right time and obtain the lowest rate for their clients, they will certainly work towards that goal from the moment that you begin the application process with them.  Don’t delay and apply today.  Call 910-332-0650 or complete the FULL application on their website under the APPLY HERE tab.

Rates continue to be historically low although they are going up.

Wednesday, October 16th, 2019

For the week ending October 3, Freddie Mac announced that 30-year fixed rates rose one tick to 3.65% from 3.64% the week before. The average for 15-year loans decreased to 3.14% and the average for five-year ARMs remained at 3.38%. A year ago, 30-year fixed rates averaged 4.71%, more than 1.0% higher than today. “While rates on home loans generally held steady this week, overall demand remained very strong, rising over fifty percent from a year ago thanks to increases in both refinance and purchase applications. As economic growth decelerates, it is clear that low interest rates will continue to support the real estate market and we expect that to persist for the remainder of the year,” 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.

 

Refinancing abounds amongst our younger homeowners.

Thursday, October 3rd, 2019

More millennial homebuyers refinanced mortgage loans in August as average interest rates dropped to its lowest level since December 2016.

Refinances for millennials grew 2% month-over-month to 25% of all closed loans, the highest share since December 2015, according to the Ellie Mae Millennial Tracker.

Average interest rates for 30-year notes fell to 4.059%, spurring the increase. Meanwhile, shortage in affordable housing in growing markets led to purchases dipping for the second consecutive month, accounting for 74% of all closed loans.

Conventional refinance loans climbed to 29% from 27%, while conventional purchase loans dropped to 69% from 72%. VA refinances also posted a monthly increase to 38% as purchases declined to 62%. FHA purchases were down to 91% and refinances inched up one point to 9% in August.

“We are seeing millennial homeowners who may have purchased homes only a few years ago quickly taking advantage of the industry’s extremely low interest rates,” said Ellie Mae Chief Operating Officer Joe Tyrrell. “We will also be watching to see if the increased purchase power from a lower rate environment enables some Millennials to make the leap into homeownership as we enter the fall home-buying season.”

With the increase of refinances, time to close for all loans to millennials and refinance loans was 42 days in August. Purchase loans remained unchanged for the third month in a row at 40 days.

Here we go lower again! But for how long?

Wednesday, October 2nd, 2019

For the week ending September 26, Freddie Mac announced that 30-year fixed rates fell to 3.64% from 3.75% the week before. The average for 15-year loans decreased to 3.16% and the average for five-year ARMs moved down to 3.38%. A year ago, 30-year fixed rates averaged 4.72%, more than 1.0% higher than today. “With both the unemployment rate and fixed rates below four percent and near historic lows, it is no surprise that the housing market regained momentum with home sales and construction at or near decade highs. The fall housing market is poised to continue with steady gains in prices and solid sales activity,” said Sam Khater, Chief Economist, Freddie Mac.

It is a roller coaster ride that we’ve seen with lulls in-between the peaks and valleys.  Just how long these flats will last depend upon nothing more than what we’ve been experiencing all along-uncertainty in the marketplace.  The risk to float a loan may bring the reward that so many are waiting for, however the opportunity to lock at a rate which is as close to the lowest that we’ve ever had in the history of modern day interest rates, may be as comforting to many who do not gamble with their everyday resources.  Please call ABBA First Mortgage and get on board with us as we work with you and for you seeking the BEST new mortgage for your needs.

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.