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ABBA First Mortgage News

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Rates looking “gooder” at ABBA First Mortgage

Thursday, June 3rd, 2021

We see, while looking for low Wilmington mortgage rates, that rates got a little bit better (were “gooder”) last week, but it’s amazing how easily the market can turn on a dime and give back all the gains in just a week. Today is Thursday, June 3, and rates are struggling to hold the better pricing that it had produced a mere week ago.  ABBA First Mortgage is still offering a rate lower than the national rate with 2.875% at 0 points being the name of the game for qualified clients seeking to purchase a home with a 30 year mortgage.

For the week ending May 27, Freddie Mac announced that 30-year fixed rates decreased to 2.95% from 3.00% the week before. The average for 15-year loans fell to 2.27% and the average for five-year ARMs remained at 2.59%. A year ago, 30-year fixed rates averaged 3.15%, 0.20% higher than today. Attributed to Sam Khater, Chief Economist, Freddie Mac – “Mortgage rates are down below three percent, continuing to offer many homeowners the potential to refinance and increase their monthly cash flow. In fact, homeowners who refinanced their 30-year fixed-rate loan in 2020 saved more than $2,800 dollars annually. Substantial opportunity continues to exist today, as nearly $2 trillion in conforming loans have the ability to refinance and reduce their interest rate by at least half a percentage point.”

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 are slightly deteriorating. Have we seen the best of the best?

Thursday, May 27th, 2021

For the week ending May 20, Freddie Mac announced that 30-year fixed rates increased to 3.00% from 2.94% the week before. The average for 15-year loans rose to 2.29% and the average for five-year ARMs remained at 2.59%. A year ago, 30-year fixed rates averaged 3.24%, 0.24% higher than today. As of May 27, the 30-year fixed rate has increased to 3.00%, but ABBA First Mortgage is offering a credit instead of charging an origination cost like most other lenders.  The rate of 2.875% is still available through ABBA First Mortgage with extenuating circumstances considered.

Attributed to Sam Khater, Chief Economist, Freddie Mac – “After a run up over the first few months of the year, rates have paused and hovered around three percent since March. Despite this favorable rate climate, there remains a shortage of homes for sale. The lack of housing supply has been compounded by labor disruptions and expensive building materials that are driving up the cost of new housing, making it difficult for homebuyers to find homes 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.

Once again a week of low rates

Wednesday, May 19th, 2021

While rates remain slightly under 3.0% for many borrowers seeking to purchase new homes, the picking’s are quite slim as they say here in the South.  The housing shortage isn’t going away any time soon as buyers are finding out that new homes can be somewhat costly even though they may have sold their previous home for top dollar themselves.  According to some, they say that the costs have sky-rocketed for homes that are for sale and that if it weren’t for the great rates being offered by the mortgage industry, that they wouldn’t be shopping for a new home to live in at this time.  Rates were GREAT last years at time, but rates are a .25% better now than they were a year ago today!

For the week ending May 13, Freddie Mac announced that 30-year fixed rates decreased to 2.94% from 2.96% the week before. The average for 15-year loans fell to 2.26% and the average for five-year ARMs decreased to 2.59%. A year ago, 30-year fixed rates averaged 3.28%, more than 0.25% higher than today. Attributed to Sam Khater, Chief Economist, Freddie Mac – “Since the most recent peak in April, rates on home loans have declined nearly a quarter of a percent and have remained under three percent for the past month. Low rates offer homeowners an opportunity to lower their monthly payment by refinancing and our most recent research shows that many borrowers who could benefit from refinancing still aren’t pursuing the option. Additionally, the low rate environment has been a boon to the housing market but may not last long as consumer inflation has accelerated at its fastest pace in more than twelve years and may lead to higher mortgage rates in the summer.”

ABBA First President, Rich Biagini, says that he would like to see more clients consider the option of refinancing now before rates make the turn and decide to go up again.  He believes that once the bottom is hit, that there will be no turning back and rates will take off like a rocket with inflation as its source of energy.

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.

Will the fear of inflation drive interest rates up? If so, when and how much?

Friday, May 14th, 2021

Whew.  Those are hard questions to answer without a crystal ball or a glimpse of the future from some other sort of source.  Historically speaking, when we see that 1) the average price for all other marketable goods that we purchase on a daily basis have gone up (which they have with regularity over the past several weeks), interest rates are sure to follow close behind.  2) Having a fuel/gasoline shortage has quickened the pace for the additional pricing added back into the mortgage interest rates from the lender, and this has made for an environment where rates are steadily worsening as a result of these two factors.*

Therefore, ABBA First Mortgage will work with ALL clients that apply for a mortgage and if qualified, should be able to obtain a rate that is as good OR BETTER than any rate available on any given day from any legitimate lender!  Please give me a call and I will gladly discuss this with you.  Rich at 910-332-0650  If you don’t call, you’ll never know what you missed out on!

According to Freddie Mac Chief Economist Sam Khater.  “Since the most recent peak (in home purchases) in April, mortgage rates have declined nearly a quarter of a percent and have remained under 3% for the past month.  Low rates offer homeowners an opportunity to lower their monthly payment by refinancing, and our most recent research shows that many borrowers, especially Black and Hispanic borrowers, who could benefit from refinancing still aren’t pursuing the option.”

While the low mortgage rate environment is good news for homeowners and borrowers, that doesn’t mean it’s sustainable due to the surging inflation rate in the economy. In April, consumer prices reached their highest level in 13 years, according to the US Labor Department and as mentioned above, continue to outpace the growth of the economy leading to these fears of inflation.

*To further emphasize my point”, Freddie Mac’s Sam Khater went on to say, “The low mortgage rate environment has been a boon to the housing market but may not last long as consumer inflation has accelerated at its fastest pace in more than twelve years and may lead to higher mortgage rates in the summer”.

Slight increase in rates over the past week

Tuesday, May 11th, 2021

For the week ending May 6, Freddie Mac announced that 30-year fixed rates decreased slightly to 2.96% from 2.98% the week before. The average for 15-year loans fell one tick to 2.30% and the average for five-year ARMs rose to 2.70%. A year ago, 30-year fixed rates averaged 3.26%, 0.30% higher than today. “Mortgage rates have remained under three percent for three consecutive weeks. Consumer income and spending are picking up, which is leading to an acceleration in economic growth. The combination of low and stable rates, coupled with an improving economy, is good for homebuyers. It’s also good for homeowners who may have missed prior opportunities to refinance and increase their monthly cash flow,” 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 remain stable…with a hope for the near future

Wednesday, 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

Thursday, 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

Thursday, 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

Tuesday, 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.

Wednesday, 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.