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ABBA First Mortgage News

So what’s happening with interest rates?

November 12th, 2021

Mortgage rates took a hit on Wednesday with the MBS losing 72 bps on the day after two previous days of the rate market worsening.  That’s a total of three back to back to back days of lenders trying to keep rates low but having to react to the situation on hand and raising mortgage interest rates, despite wanting to remain busy going into the fall and winter months when the market typically slows down anyway.  ABBA First Mortgage has taken it on the chin but instead of passing the full rate deterioration onto the borrower, has chosen to take the loss with reducing the rates only slightly while maintaining their level of high service and all around excellent loan pricing of choosing to put the borrower first.  Please give us a call and see what we can do for you today at 910-332-0650 with our unadvertised specials for new clients this month.

Thank you in advance.  Rich Biagini – Owner and President – ABBA First Mortgage

Slight improvement in rate before crashing and burning the following week beginning on Nov 8th

November 10th, 2021

The 30 year rate went from an average of 3.14% to 3.09% for the week ending on Thursday 11/1/21. 15-year loans eased to 2.35% and the average for five-year ARMs decreased to 2.54%.  A year ago, 30-year fixed rates averaged 2.78%, more than .25% lower than today. Attributed to Sam Khater, Chief Economist, Freddie Mac – “While mortgage rates fell after several weeks on the rise, we expect future upticks due to stronger economic data and as the Federal Reserve pulls back on its stimulus. That said, the housing market remains favorable for consumers, as rates remain below pre-pandemic levels and continue to support sustainable purchase and refinance opportunities.”

 

 

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 continue to climb

November 3rd, 2021

For the week ending October 28, 30-year rates rose to 3.14% from 3.09% the week before.

 

In addition, 15-year loans increased to 2.37% and the average for five-year ARMs rose to 2.56%. A year ago, 30-year fixed rates averaged 2.81%, more than .25% lower than today. Attributed to Sam Khater, Chief Economist, Freddie Mac – “The yield on the 10-year Treasury note has been trending up due to the decline in new COVID cases, increasing consumer optimism, as well as broadening inflation and persistent shortages. Mortgage rates are also rising, but purchase demand remains firm, showing that latent purchase demand exists among consumers.”

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 have worsened for almost 2 weeks until Wednesday the 27th, when they improved for the first time.

October 27th, 2021

As of Tuesday, October 26, rates continued rise slowly.  However, on Wednesday, we saw the rates improve for the first time in several days which was a nice reprieve.

Mortgage rates continued to move higher in the past week. For the week ending October 21, 30-year rates rose to 3.09% from 3.05% the week before.  In addition, 15-year loans increased to 2.33% and the average for five-year ARMs fell slightly to 2.54%. A year ago, 30-year fixed rates averaged 2.80%, approximately .25% lower than today. Attributed to Sam Khater, Chief Economist, Freddie Mac – “Mortgage rates continued to rise this week due to the trajectory of both the economy and the pandemic. Even as the availability of existing homes is improving, prices remain high due to homebuyer demand and limitations on housing starts and permits resulting from the ongoing labor and material shortages. Despite these countervailing forces, we expect the housing market to remain strong as we head into the end of the 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.

 

NEW CONVENTIONAL LOAN LIMIT FOR ABBA FIRST MORTGAGE UP TO $625,000!

October 15th, 2021

As of today, October 15th, ABBA First is offering the same rate for all Conventional loans up to $625,000.  To date, we have had a loan limit of $548,250 but are excited to “up the ante” for our clients and for many, to help them avoid the Jumbo term loan pricing which is so much more expensive than the Conventional loan pricing.  So to the many who have avoided refinancing because of their loan amounts exceeding certain loan limits, welcome to the world of refinancing through ABBA First Mortgage!

Or if you’re looking to buy a home and don’t want to be in the Jumbo loan category because of higher rates and fees and restrictions that are cumbersome, we have the answer for you with our Conventional Mortgage loans up to $625,000.  Call us at 910-332-0650 and get started now with the lower rates that are offered through Conventional pricing and through ABBA First Mortgage.

For the week ending September 30, 30-year rates rose to 3.01% from 2.88% the week before.

October 6th, 2021

In addition, 15-year loans increased to 2.28% and the average for five-year ARMs rose to 2.48%. A year ago, 30-year fixed rates averaged 2.88%, approximately .125% lower than today. Attributed to Sam Khater, Chief Economist, Freddie Mac – “Mortgage rates rose across all loan types this week as the 10-year U.S. Treasury yield reached its highest point since June. Many factors led to this increase, including the Federal Reserve communicating that it will taper its support of the capital markets, the broadening of inflation and emerging energy supply shortages which compound other labor and materials shortages. We expect mortgage rates to continue to rise modestly which will likely have an impact on home prices, causing them to moderate slightly after increasing over the last year.” 

ABBA First has kept rates in line with the lowest possible rates available for refinancing as well as for purchases.  Please call 910=332-0650 and find out how you can still take advantage of historically low rates before they get away from you.  We will work with you and find the best product to meet 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.

Foreclosures up 27% this month compared to last month

October 6th, 2021

If you’re interested in buying, keep your eyes open and your ear to the ground. What may be a travesty for someone may be the answer to your prayers as you’ve been waiting to purchase your first new home or an investment property to help you maintain your monthly income.  Come see ABBA First and be pre-approved for this purchase so that you have your ducks in a row before the opportunity passes you by.

Foreclosure activity increased significantly in August after the federal foreclosure moratorium ended July 31, reported ATTOM, Irvine, Calif. The ATTOM U.S. Foreclosure Market Report for August showed 15,838 U.S. properties with foreclosure filings–either default notices, scheduled auctions or bank repossessions–up 27 percent from July and up 60 percent from a year ago. The numbers reflect the first month since the government moratorium lifted. The federal ban on foreclosures expired in July, but the Federal Housing Administration extended its moratorium on evictions for foreclosed borrowers and their occupants through September 30. Rick Sharga, Executive Vice President at ATTOM subsidiary RealtyTrac, said foreclosure activity increased “as expected” as the government’s foreclosure moratorium expired, “but this doesn’t mean we should expect to see a flood of distressed properties coming to market,” he said. “We’ll continue to see foreclosure activity increase over the next three months as loans that were in default prior to the moratorium re-enter the foreclosure pipeline and states begin to catch up on months of foreclosure filings that simply haven’t been processed during the pandemic.”  But Sharga said foreclosures will likely remain below normal levels at least through the end of the year. Nationwide, one in every 8,677 housing units had a foreclosure filing in August.  ATTOM reported lenders started the foreclosure process on 8,348 U.S. properties in August, up 27 percent from last month and up 49 percent from a year ago.

Source: The Mortgage Bankers Association

And so the saga of rates going continues up and down continues

September 29th, 2021
Today is September 29th and rates have lost ground again today after a strong surge this  morning.

For the week ending September 23, 30 year mortgage rates rose slightly from the week before.

In addition, 15-year loans increased to 2.15% and the average for five-year ARMs fell to 2.43%. A year ago, 30-year fixed rates averaged 2.90%, virtually the same as today. Attributed to Sam Khater, Chief Economist, Freddie Mac – “The slowdown in economic growth around the world has caused a flight to the quality of the U.S. financial markets. This has led to a rise in foreign investor purchases of U.S. Treasuries, causing mortgage rates to remain in place, despite the increasing dispersion of inflation across different consumer goods and services.”

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.

Stability reigns! Until tomorrow…

September 15th, 2021

The claim all along has been to buy now or refinance now before it’s too late!  People have heard that cry for so long that they’ve likened it as unto the boy who cried wolf.  But the day will soon come when rates will go up and those of you who have not taken advantage of these historically low rates “will be left behind” without a home (as I scramble in the fairy tale of the 3 pigs and the wolf who huffed and puffed and blew the houses down that had high interest rates or that were built poorly) that has a good mortgage interest rate.   Call ABBA First now toll free at 866-676-3349.

For the week ending September 9, Freddie Mac announced that 30-year fixed rates rose one tick to 2.88%.  The average for 15-year loans also rose one tick to 2.19% and the average for five-year ARMs decreased slightly to 2.42%.  A year ago, 30-year fixed rates averaged 2.86%, slightly lower than today.  Attributed to Sam Khater, Chief Economist, Freddie Mac – “While the economy continues to grow, it has lost momentum over the last two months due to the current wave of new COVID cases that has led to weaker employment, lower spending and declining consumer confidence.  Consequently, mortgage rates dropped early this summer and have stayed steady despite increases in inflation caused by supply and demand imbalances.  Net result for housing is that these low and stable rates allow consumers more time to find the homes they are looking to purchase.”

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.

Rise to fall & remain then & become flat to steady

September 9th, 2021

Just like it’s hard to keep track of the erratic ups and downs of a hummingbird in flight, so it is with the 30 yr mortgage interest rate as it is affected by so many outside forces causing it to swing to and fro; up and down.  We do know that there are some steering forces behind each swing that it takes; we just don’t always recognize when it will eventually make its move.

Mortgage rates were flat again in the past week. For the week ending September 2, Freddie Mac announced that 30-year fixed rates remained at 2.87%, the same as the two weeks before. The average for 15-year loans rose one tick to 2.18% and the average for five-year ARMs increased slightly to 2.43%. A year ago, 30-year fixed rates averaged 2.93%, slightly higher than today. Attributed to Sam Khater, Chief Economist, Freddie Mac – “Economic growth and the acceleration in inflation have moderated in the last month, giving the markets comfort and leading to a stabilization in mortgage rates. Heading into the fall, home purchase demand is stable, home sales remain firm and above pre-pandemic levels, and inventory of unsold homes is tight but improving modestly. These factors will allow for home price pressures to ease over the remainder of the 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.