ABBA First Mortgage News

Last week was flat- So far this week, rates are on the rise.

With today being August 25th, we see that 3 of the past 4 business days, MBS (Mortgage Backed Securities) have worsened and rates have gone up. It is only natural that borrowers need to be more serious about their intentions to finance sooner rather than later with this news being put out there for each of us to be aware of.  And this Friday, the 27th, The Federal Reserve Board may make the decision as to whether to taper the US bond purchases in October of ’21 or possibly wait until 2022 before starting that action.  The longer the Feds hold off, the better it will be for a low, mortgage interest rate marketplace hopefully keeping our economy in a robust state of mind.

For the week ending August 19, Freddie Mac announced that 30-year fixed rates decreased one tick to 2.86% from 2.87% the week before.  The average for 15-year loans rose one tick to 2.16% and the average for five-year ARMs decreased slightly to 2.43%. A year ago, 30-year fixed rates averaged 2.99%, slightly higher than today. Attributed to Sam Khater, Chief Economist, Freddie Mac – “Mortgage rates stayed relatively flat this week. Housing is in a similar phase of the economic cycle as many other consumer goods. While there is strong latent demand, low supply has caused prices to rise as shortages restrict the amount of sales activity that otherwise would occur.”

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.

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