ABBA First Mortgage News

Archive for the 'Uncategorized' Category

Moving up quickly-Rates up a .5%

Tuesday, April 24th, 2018

Rates rose dramatically in the past week. For the week ending April 19, Freddie Mac announced that 30-year fixed rates rose to 4.47% from 4.42% the week before. The average for 15-year loans increased to 3.94% and the average for five-year adjustables moved up to 3.67%. A year ago, 30-year fixed rates averaged 3.97%. Attributed to Len Kiefer, Deputy Chief Economist, Freddie Mac –“Treasury yields rose ahead of the release of the Fed’s Beige Book and speeches from New York Fed President William Dudley and Fed Governor Randal Quarles. According to the Beige Book, economic activity in March and early April continued to expand at a moderate pace, however there is concern from various industries surrounding tariffs. Following Treasurys, rates on home loans increased. The U.S. weekly average 30-year fixed rate rose 5 basis points to 4.47 percent in this week’s survey, its highest level since January of 2014 and the largest weekly increase since February of 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.

Rates remain flat for another week without going up. Call 866-676-3349 and get your free quote!

Tuesday, April 17th, 2018

Rates were stable in the past last week. For the week ending April 12, Freddie Mac announced that 30-year fixed rates rose to 4.42% from 4.40% the week before. The average for 15-year loans remained at 3.87% and the average for five-year adjustables moved down slightly to 3.61%. A year ago, 30-year fixed rates averaged 4.08%, higher than today’s level. Attributed to Len Kiefer, Deputy Chief Economist, Freddie Mac –“Rates on home loans have been holding steady over the past two months. Rates have bounced around 4.4 percent since mid-February. Rates could break out and head higher if inflation continues to firm. The U.S. Bureau of Labor Statistics reported this week that the Consumer Price Index increased 2.4 percent over the 12 months ending in March, the largest 12-month increase in a year. Members of the Federal Reserve’s Federal Open Market Committee are looking at inflation indicators to help determine the appropriate path for policy. If inflation continues to trend higher, we may see two or three more rate hikes from the Fed this year, and rates on home loans could follow. For now, rates are still quite low by historical standards, helping to support homebuyer affordability as the spring homebuying season ramps up.” 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.

Steadily and slowly rates show little movement

Tuesday, April 3rd, 2018

Rates on 30-year fixed home loans were stable again in the past week. For the week ending March 29, Freddie Mac announced that 30-year fixed rates fell one tick to 4.44% from 4.45% the week before. The average for 15-year loans also decreased slightly to 3.90% and the average for five-year adjustables fell to 3.66%. A year ago, 30-year fixed rates averaged 4.14%, higher than today’s level. Attributed to Len Kiefer, Deputy Chief Economist, Freddie Mac — “Treasury yields fell from a week ago helping to drive rates on home loans slightly lower. The yield on the 10-year Treasury dipped below 2.8 percent for the first time since early February of this year. The decline in Treasury yields comes as investors move into safer assets amid increased trade tensions. Following Treasurys, rates on home loans fell slightly. The U.S. weekly average 30-year fixed rate fell 1 basis point to 4.44 percent in this week’s survey.” 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 steady after worsening last week

Tuesday, March 27th, 2018

Rates on 30-year fixed home loans were stable in the past week. For the week ending March 15, Freddie Mac announced that 30-year fixed rates rose one tick to 4.45% from 4.44% the week before. The average for 15-year loans also increased slightly to 3.91% and the average for five-year adjustables rose to 3.68%. A year ago, 30-year fixed rates averaged 4.23%,  higher than today’s level. Attributed to Len Kiefer, Deputy Chief Economist, Freddie Mac — “The Federal Reserve raised interest rates — a much-anticipated move that comes as both U.S. and global economic fundamentals continue to strengthen. The Fed’s decision to raise interest rates by a quarter of a percentage point puts the federal funds rate at its highest level since 2008 — a decision which was widely expected. The U.S. weekly average 30-year fixed rate rose only 1 basis point to 4.45% percent in this week’s survey. So far, U.S. housing markets remain resilient in the face of higher interest rates. The National Association of Realtors® reported this week that existing home sales in February increased 3 percent month-over-month on a seasonally adjusted basis and are up 1.1 percent from a year ago.” 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 march upward- although at a slower pace this past week

Tuesday, March 6th, 2018

When rates go up, ABBA First Mortgage offers lower than market rates.  Call us at 866-676-3349 and find out for yourself.

The rise in rates for home loans continued at a slower pace in the past week. For the week ending March 1, Freddie Mac announced that 30-year fixed rates increased to 4.43% from 4.40% the week before. The average for 15-year loans rose to 3.90% and the average for five-year adjustables fell to 3.62%. A year ago, 30-year fixed rates averaged 4.10%, higher than today’s level. Attributed to Len Kiefer, Deputy Chief Economist, Freddie Mac — “Optimistic testimony on Capitol Hill from Federal Reserve Chairman Jerome Powell sent Treasury yields higher as Powell stated his outlook for the economy has strengthened since December. Following Treasurys, the 30-year fixed rates jumped 3 basis points in this week’s survey. The 30-year rate has been on a tear in 2018, climbing 48 basis points since the start of the year and increasing for eight consecutive weeks. We think that the strength in the economy and pent up housing demand should allow U.S. housing markets to post modest growth this year even with higher interest rates. We really have to wait for housing markets to heat up in spring, but early indications are that housing demand remains robust despite these rate increases.” 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.

CALL TOLL FREE 866-676-3349 FOR YOUR RATE QUOTE- Things to look for when looking at Open Houses to buy-

Tuesday, February 6th, 2018

When touring open houses, watch for signs of larger issues with the property. Jenna Dougherty and Greta Eoff of the DeMasi Group at Keller Williams Realty in Davis, Calif., shared items that should raise alarms for potential buyers.

  • Overpowering scent. Don’t be too heavy-handed with scented candles or other fragrances, it could be a signal to buyers that you are trying to cover up the source of more serious odors, such as a musty smell from mold, pets, or something else.
  • Poor tiling. If there are gaps in the tiles or if the tiles are slightly uneven, it may indicate a poor DIY remodeling project that doesn’t meet professional standards.
  • Major cracks. Most homes have a few hairline cracks, but watch out for large cracks. Check for doors and windows that stick or cracks above window frames, which may indicate a larger foundation issue
  • Mold. Open the cabinets around bathroom and kitchen sinks and look around the drains for any mold. Even small black or gray spots may indicate a more serious issue. Mold can signal water damage or improper ventilation in the home.

Source: realtor.com®

Another Fed induced rate hike coming soon!

Monday, February 5th, 2018

Mortgage rates increased again for the week ending Feb. 1, continuing their upward trend, according to the Primary Mortgage Market Survey released by Freddie Mac.

The 30-year fixed-rate mortgage averaged 4.22%, with an average 0.5 point, up from the previous 4.15% average. The average rate also increased on a year-over-year basis from the 4.19% average in the same week in 2017.

The average rate for the 15-year fixed-rate mortgage was 3.68%, with an average 0.5 point. The average increased from the 3.62% average in the previous week as well as the 3.41% average in the same period last year.

Rates for the 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.53%, with an average 0.4 point. In the prior period, it averaged 3.52%. A year ago at this time, the 5-year ARM averaged 3.23%.

“The Federal Reserve did not hike rates this week, but the market views future hikes as a near certainty,” Freddie Mac Deputy Chief Economist Len Kiefer said. “The expectation of future Fed rate hikes and increased borrowing by the US Treasury is putting upward pressure on interest rates. The 30-year fixed-rate mortgage is up over a quarter of a percentage point (27 basis points) from the first week of the year. 30-year fixed mortgage rates have increased for four consecutive weeks and are now slightly above where they were last year at this time.”

Rates continue to trend up

Tuesday, January 30th, 2018

Rates on home loans moved upwards again in the past week. For the week ending January 25, Freddie Mac announced that 30-year fixed rates increased to 4.15% from 4.04% the week before. The average for 15-year loans rose to 3.62% and the average for five-year adjustables climbed to 3.52%. A year ago, 30-year fixed rates averaged 4.19%, slightly higher than today’s level. Attributed to Len Kiefer, Deputy Chief Economist, Freddie Mac — “Rates keep climbing. The 10-year Treasury yield reached its highest point since 2014 reflecting expectations of broad-based economic growth. Rates on home loans, in turn, followed the surge in Treasury yields. The 30-year fixed rate jumped 11 basis points to 4.15 percent, its highest level since March of last 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.  (With permission from Origination Pro)

Rates continue to rise as the economy continues to improve

Wednesday, January 3rd, 2018

Rates rose in the past week, with 30-year fixed rates moving close to the 4.00% level.  For the week ending December 28, Freddie Mac announced that 30-year fixed rates rose 3.99% from 3.94% the week before.  The average for 15-year loans increased to 3.44%.  BUT LOOK AT ABBA FIRST MORTGAGE INTEREST RATES!  Our rates are amongst the lowest offered in the country for fixed rate mortgages.  Without going through each one individually, please go to our RATES page as you can link to it just above this news page.  About other rates- the average for five-year adjustables rose to 3.47%.  A year ago, 30-year fixed rates averaged 4.32%, more than 0.25% higher than today.  Attributed to Sean Becketti, chief economist, Freddie Mac — “As we expected, rates on home loans felt the effect of last week’s surge in long-term interest rates in the final, shortened week of 2017. The 30-year fixed rate increased 5 basis points to 3.99 percent in this week’s survey. Although this week’s survey rate represents a five-month high, 30-year fixed rates are still below the levels we saw at the end of last year and the early part of 2017. Rates on home loans have remained relatively low all year.”

How will the new tax laws and lower tax rates affect mortgage interest rates? We’ve seen oil and mortgage rates inching up…

Tuesday, January 2nd, 2018
It is the first of the year and we have been inundated with projections regarding the economy, interest rates, real estate and more. It is always hard to predict the future and this year is going to be even harder to predict because of a new variable — the tax law. As we have mentioned previously, the lowering of tax rates is likely to stimulate an already strengthening economy. This should be good news for jobs, retailers and more. The question remains how strong will the economy get and what will the effects be on interest rates, oil prices — and ultimately inflation. We have already seen rates and oil prices creeping up in anticipation of the action.  When we move to real estate, the prediction game gets even harder. Economists were already predicting continued inventory shortages, more new homes coming on-line and moderating price increases. But the change in the standard and mortgage deductions will certainly have to be factored into the equation. The doubling of the standard deduction means that those purchasing on the lower end of the scale are more likely to not take advantage of the deduction of interest on home loans. Likewise, those who own higher priced homes are less likely to make a move because they would lose part of their present deduction.
Here is the good news. There are four solid economic reasons to own a home and the tax deduction is only one of these four. The home will still serve as a leveraged investment, a forced savings plan and protection against inflation. As a matter of fact, we feel the tax law’s effect upon interest rates may be a more important factor in determining the direction of the real estate markets than the tweaks made in the deductions. In this regard, those who feel that rates will ultimately rise because of the economic effects of the law may very well be inclined to purchase now rather than later.