ABBA First Mortgage News

Rising rates continue passing those of Aug 2013

May 1st, 2018

Rates continued to rise in the past week. For the week ending April 26, Freddie Mac announced that 30-year fixed rates rose to 4.58% from 4.47% the week before. The average for 15-year loans increased to 4.02% and the average for five-year adjustables moved up to 3.74%. A year ago, 30-year fixed rates averaged 4.03%. Attributed to Sam Khater, Chief Economist, Freddie Mac — “Rates on home loans are now at their highest level since the week of August 22, 2013. Higher Treasury yields, driven by rising commodity prices, more Treasury issuances and the steady stream of solid economic news, are behind the uptick in rates over the past week. Despite the increase in borrowing costs, demand for home purchase credit remains solid.” 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 the MBS marketplace improved all day with slight movements upward, banks showed no signs of improving at all- not even an inch! It’s true. Banks easily worsen their rates at the drop of a dime, but are so very slow to improve their rates even when the market had allowed for it throughout the day. Keep your eyes open for any slight betterment that might be on the horizon that you will find on our rates page after these past several days of deterioration.

April 26th, 2018

Moving up quickly-Rates up a .05%

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!

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

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

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

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-

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!

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

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)