Although these posts typically share the industry’s news of what the future may hold for the direction of mortgage interest rates, this post is being used to thank the 3000+ prospects that have contacted ABBA First for their home mortgages. More than half have completed the process of obtaining your home’s financing through ABBA First and for this, Maureen and I just wanted to tell you all that we are so very thankful for you as you have trusted us by placing your business with our company. As we put our trust in God to see us into retirement or wherever He may lead us, we pray that your needs are met financially and that all will be well with you and your soul as you continue your journey along life’s pathway. Please call us if you have any questions or concerns about your mortgage situation at 910-332-0650. Or email me at my new email address of email@example.com
Back to business….Mortgage rates were steady in the past week, but moved up as the survey data was released. In addition, 15-year loans rose to 2.42% and the average for five-year ARMs eased to 2.47%. A year ago, 30-year fixed rates averaged 2.72%, more than .25% lower than today. Attributed to Sam Khater, Chief Economist, Freddie Mac – “Despite the noise around the economy, inflation, and monetary policy, mortgage rate volatility has been low. For most of 2021, mortgage rates have stayed within half a percentage point, which is a smaller range than in past years.”
As expected, the Federal Reserve announced it will start unwinding its $120 billion monthly bond purchases late in November. The Fed had been purchasing $80 billion in Treasury securities each month and said it will reduce that to $70 billion in November and to $60 billion in December. It said it also will reduce purchases of mortgage-backed securities from $40 billion to $35 billion in November, and to $30 billion in December. Consensus forecasts from Fannie Mae, Freddie Mac, the Mortgage Bankers Association (MBA), and the National Association of Realtors (NAR) predict mortgage rates will hit 3.2% by the end of the year, and 3.7% by the end of 2022. Odeta Kushi, deputy chief economist for First American Financial Corp., has examined the history of various eras of rate increases and offers some insight into how home sales and prices may be affected by the Fed’s tapering of bond 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.