ABBA First Mortgage News

Rates remain stable…with a hope for the near future

April 7th, 2021

For the week ending April 1, Freddie Mac announced that 30-year fixed rates increased slightly to 3.18% from 3.17% the week before. The average for 15-year loans remained at 2.45% and the average for five-year ARMs also was unchanged at 2.84%. A year ago, 30-year fixed rates averaged 3.33%, 0.15% higher than today. “Although rates remain low, we are beginning to see a pullback by those looking to enter the housing market. In fact, homebuyer demand has gone from 25% above pre-COVID levels at the start of the year, when rates hit record lows, to 8% above pre-COVID levels today. We even see that purchase demand is diminished today as compared to late May and early June of 2020, when rates were the same level. This is confirmation that while purchase demand remains strong, the marginal buyer is feeling the affordability squeeze resulting from the increases in mortgage rates and home prices we’ve experienced in recent months,” said Sam Khater, Chief Economist, Freddie Mac.

Call ABBA First at 910-332-0650 and ask for Rich for the latest in rates or go to their rates page which is updated daily for general rates, not specific to your mortgage or any improvements available.

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.

Now is the time to refinance before rates go up any further

April 1st, 2021

From Wilmington NC, ABBA First offers a wide variety of loan programs including FHA, VA, USDA, and Conventional at low competitive interest rates with exceptional 5 star service that is second to none for all borrowers of NC and TN. Some may say, “so who cares, as long as I get the lowest rate possible”.  Sadly, these borrowers struggle there way through problem after problem with the processing of their loan until many of them simply throw up their hands and say “It’s not worth the hassle!”  At ABBA First, we struggle also, but do it on our end and work out the details with the lender so that you won’t have to.  It makes all the difference in the world- AND our rates are competitive.  Just give us a chance!  We’ll strive to meet or beat our competitor’s rates to earn your business.  Call toll free 866-676-3349 in NC and TN to speak with the owner of ABBA First, Rich Sr., to simply get a free quote which will meet your needs.

For the week ending March 25, Freddie Mac announced that 30-year fixed rates increased to 3.17% from 3.09% the week before. The average for 15-year loans rose to 2.45% and the average for five-year ARMs increased to 2.84%. A year ago, 30-year fixed rates averaged 3.50%, over 0.25% higher than today. “During the course of the pandemic, ‘home’ has become more important than ever. As a result, strong purchase demand continues—but buyers also outnumber the sellers. Since January, rates have increased half a percentage point from historic lows and home prices have risen, leaving potential homebuyers with less purchasing power. Unfortunately, this has disproportionately affected the low end of the market, where supply is the slimmest,” said Sam Khater, Chief Economist, Freddie Mac.

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 marching upwards

April 1st, 2021

With regard to low mortgage rates in Wilmington NC, ABBA First offers a wide variety of loan programs including FHA, VA, USDA, and Conventional, all at low competitive interest rates with 5 star service that is second to none. Some may say, “so who cares, as long as I get the lowest rate possible”.  Sadly, these borrowers struggle there way through problem after problem with the processing of their loan until many of them simply throw up their hands and say “I quit!”  At ABBA First, we struggle also, but do it on our end and work out the details with the lender so that you don’t have to.  It makes all the difference in the world- AND our rates are competitive.  Just give us a chance!  We’ll strive to meet out competitor’s rates to earn your business.  Call toll free 866-676-3349 in NC and TN.

For the week ending March 25, Freddie Mac announced that 30-year fixed rates increased to 3.17% from 3.09% the week before. The average for 15-year loans rose to 2.45% and the average for five-year ARMs increased to 2.84%. A year ago, 30-year fixed rates averaged 3.50%, over 0.25% higher than today. “During the course of the pandemic, ‘home’ has become more important than ever. As a result, strong purchase demand continues—but buyers also outnumber the sellers. Since January, rates have increased half a percentage point from historic lows and home prices have risen, leaving potential homebuyers with less purchasing power. Unfortunately, this has disproportionately affected the low end of the market, where supply is the slimmest,” said Sam Khater, Chief Economist, Freddie Mac.

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.

Up to the minute report on IMPROVING market

March 23rd, 2021

March 22 PM!  The first day in the afternoon, that we felt a slight bounce back from the rate deterioration that’s we’ve been experiencing for many, many, days now. Why? Because of the backlash felt from overseas investors (specifically from Germany) purchasing mortgage bonds driving the price up and the rate down, as they were experiencing a 5 day hard lockdown due to COVID issues. This betterment has nothing to do with our economy improving.  Today is March 23 and the rate improvement at 10:45 seems to be continuing. Below is what happened last up until last Thursday.

Rates continue to rise in the past week. For the week ending March 18, Freddie Mac announced that 30-year fixed rates increased to 3.09% from 3.05% the week before. The average for 15-year loans rose to 2.40% and the average for five-year ARMs increased to 2.79%. A year ago, 30-year fixed rates averaged 3.65%, over 0.50% higher than today. Attributed to Sam Khater, Chief Economist, Freddie Mac – “As expected, rates on home loans continued to inch up but are still hovering around three percent, keeping interested buyers in the market. However, residential construction has declined for two consecutive months and given the very low inventory environment, competition among potential homebuyers is a challenging reality, especially for first-time homebuyers.” 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.

 

Rising, rising, rising, Rates just keep on rising. Slowly…but surely.

March 17th, 2021

The question in the minds of many- “Is it too late to refinance our existing mortgage and/or have we missed the boat?”  The answer is found at 910-332-0650 where, and with no obligation, I will show you with a few questions and answers, whether or not it is worth your while to consider this quest based upon your scenario and your goals.  If it is not worth your while, I WILL TELL YOU SO, and the paperwork is done away with.  If the possibilities will save you money and you chose to proceed, then we can do so together and quickly before rates get away any further.

For the week ending March 11, Freddie Mac announced that 30-year fixed rates increased to 3.05% from 3.02% the week before. The average for 15-year loans rose to 2.38% and the average for five-year ARMs increased to 2.77%. A year ago, 30-year fixed rates averaged 3.36%, over 0.25% higher than today. “As the economy improves given labor market optimism, continued vaccination roll-out and additional stimulus pending, mortgage interest rates continued to increase this week. But even as rates rise modestly, the housing market remains healthy on the cusp of the spring homebuying season. Homebuyer demand is strong and, for homeowners who have not refinanced but are looking to do so, they have not yet lost the opportunity,” said Sam Khater, Chief Economist, Freddie Mac.

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.

Are low rates gone while advertised rates continue to rise?

March 12th, 2021

Not according to ABBA First Mortgage!  Just look at the Rates Page of www.ABBAFirst.com to see the latest low rates that are still available for clients seeking to find the best option for their next mortgage.  There you will notice that the low rates that you were still hoping for are still available and with just a phone call, you could be well on your way to obtaining the best rate for your home’s mortgage.

For the week ending March 4, Freddie Mac announced that 30-year fixed rates increased to 3.02% from 2.97% the week before. The average for 15-year loans remained at 2.34% and the average for five-year ARMs fell to 2.73%. As of  March 11, rates were flirting with 3.125% not too far from where we were a year ago when the 30-year fixed rates averaged 3.29%, just about 0.125% higher than today. “Since reaching a low point in January, mortgage rates have risen by more than 30 basis points, and the impact on purchase demand has been noticeable. While purchase activity remains high, it has cooled off over the last few weeks and is currently on par with early March, prior to the pandemic. However, the rise in rates over the next couple of months is likely to be more muted in comparison to the last few weeks, and we expect a strong spring sales season,” said Sam Khater, Chief Economist, Freddie Mac.

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 rise after a short reprieve

March 3rd, 2021

For the week ending February 18, Freddie Mac announced that 30-year fixed rates increased to 2.97% from 2.81% the week before. The average for 15-year loans rose to 2.34% and the average for five-year ARMs rose to 2.99%. A year ago, 30-year fixed rates averaged 3.43%, almost 0.50% higher than today. “Optimism continues as the economy slowly regains its footing, thus affecting rates on home loans. Though rates continue to rise, they remain near historic lows. However, when combined with demand-fueled rising home prices and low inventory, these rising rates limit how competitive a potential homebuyer can be and how much house they are able to purchase,” said Sam Khater, Chief Economist, Freddie Mac.

Since February 18, we have see a dramatic increase in rates when on February 25, rates worsened by nearly 100 points, the worst deterioration this year!

 

Why are rates higher today than they were a couple of weeks ago?

February 19th, 2021

The following is the “simplified” answer according to a rate advisor* (for loan officers) that I listen to on a daily basis-

  • The new Biden administration and the $1.9 trillion stimulus plan that is likely to be passed in the next few weeks. This is the main reason rates have moved. The plan will be paid for with debt, meaning a glut of supply in Treasuries that will drive down prices and drive up yields. If Treasury prices fall, so do mortgage bond prices, which means rate sheet pricing (the rates from lenders to loan officers) gets worse too.
  • Many economists and industry pundits feel that Biden’s stimulus plan is too much money, and that it is going to overheat the economy. Although there are still millions of Americans who need help recovering financially from the lockdowns and response to COVID, the economy is doing much better than the media makes it sound, other than the labor market (and that is largely jobs in hospitality and travel).
  • Inflation is now a concern. After more than a decade of not being an issue, inflation is expected to kick in big time. Inflation is bad for rates, it drives them up. Biden’s stimulus plan is expected to be a catalyst to drive more inflation, and the Fed has said that they will not fight to keep inflation in check if it starts to rise, at least not for awhile.
  • COVID counts are dropping and the vaccine numbers are increasing. This will open the door for the economy to continue to recover, for consumer spending to continue to increase, and for people to get back to work.

*Abba First would like to thank the “Hammer” for his insight on how the markets react one with another and how that affects mortgage interest rates.  His daily communications are invaluable as he keeps his finger on the pulse for hundreds of loan officers that rely on his wisdom as to how to react to daily economic changes that affect the mortgage marketplace.

Rates have begun to spike up on Tues 2/16

February 17th, 2021

Although the following paragraph about rates remaining unchanged from the previous week which according to this article’s “calendar” runs from Thursday to Thursday, on the very next day, Friday the 12th of February, we saw the market take a turn and rates begin to slip.  Which leads to Tuesday when the Mortgage Backed Securities last 75 bps and the mortgage interest rates continued their worsening ways which began the previous week.  “NOW, before rates slip away from us, is the time to jump on the bandwagon if you haven’t done so already, and refinance your home while rates are still at all time lows”.  Give me a call at 910-332-0650 and let me guide you with an honest opinion of whether or not a new mortgage is the right thing for you and your needs at his time!

For the week ending February 11, Freddie Mac announced that 30-year fixed rates remained at 2.73%, the same as the week before. The average for 15-year loans fell to 2.19% and the average for five-year ARMs rose slightly to 2.79%. A year ago, 30-year fixed rates averaged 3.47%, almost 0.75% higher than today. “It’s a tale of two economies. The services economy remains in the doldrums, but the production side of the economy remains strong. New COVID-19 cases are receding, which is encouraging and that has led to a rise in Treasury rates. But the run-up in Treasury rates has not impacted mortgage rates yet, which have held firm. The residential real estate market remains solid given healthy purchase demand while implied real-time home price growth is high, due to the inventory shortage that is plaguing the housing market,” said Sam Khater, Chief Economist, Freddie Mac.

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 rise slowly

February 10th, 2021

ABBA First Mortgage of Wilmington NC continues to offer low rates to clients seeking to purchase new home homes in NC or TN despite the trends towards higher interest rates throughout the industry.  Refinancing rates continue to remain low although slightly higher than the rates offered for homes being purchased with specials and incentives by lenders to attract first time home borrowers and to keep borrowers from leaving their flock.  A simple phone call to 910-332-0650 requesting a quote for you to see what they can do for you is all it takes to see if ABBA First Mortgage can provide you with the lowest interest rate loan for your mortgage needs.

For the week ending February 4, Freddie Mac announced that 30-year fixed rates remained at 2.73%, the same as the week before. The average for 15-year loans rose one tick to 2.21% and the average for five-year ARMs fell slightly to 2.78%. A year ago, 30-year fixed rates averaged 3.45%, almost 0.75% higher than today. “Rates on home loans remained flat this week and near record lows, signifying an economy that continues to struggle. This rate environment is advantageous for those who are looking to refinance in order to strengthen their financial position. While many have already refinanced, the evidence suggests that upper income homeowners have taken advantage of the opportunity more so than lower income homeowners who could stand to benefit the most by lowering their monthly mortgage payment,” said Sam Khater, Chief Economist, Freddie Mac.