ABBA First Mortgage News

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

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.”

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