ABBA First Mortgage News

Federal Reserve promises to keep rates low until our economy recovers from the effects of the virus.

Last month, the Federal Reserve promised to keep interest rates near zero until the labor market recovers from the coronavirus crisis.

Mortgage rates have remained under 3%, according to the Freddie Mac Primary Mortgage Market Survey (PMMS).

The 30-year fixed-rate mortgage dipped even lower for the week ending Oct. 1, the PMMS showed. The 30-year FRM averaged 2.88%, down from 2.90% the week prior. A year ago, it averaged 3.65%.

The 15-year fixed-rate mortgage also dropped week over week, down from 2.40% to 2.36%. Last year, the 15-year FRM was 3.14%. Meanwhile, the 5-year Treasury-indexed hybrid adjustable-rate mortgage stayed unchanged at 2.90%. A year ago at this time, the 5-year ARM averaged 3.38%.

“As a result of low mortgage rates that have stayed under three percent since July, the housing market has seen a strong, upward trajectory during a very uncertain time,” said Freddie Mac Chief Economist Sam Khater. “We’re seeing potential homebuyers who now have more purchasing power and many current homeowners who have the option to refinance their loan for a better rate. However, several factors could disrupt this activity, including high home prices, low inventory and lender capacity.”

ABBA First Mortgage offers an even better solution with rates and terms that meet or beat the competition when given the chance to show what they can do.  Call us at 910-332-0650 and give us the opportunity to help you save money now and for a lifetime.

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.

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