ABBA First Mortgage News

A little bit lower this week after a little bit higher last week

February 3rd, 2021

For the week ending January 28, Freddie Mac announced that 30-year fixed rates fell to 2.73% from 2.77% the week before. The average for 15-year loans also decreased to 2.2% and the average for five-year ARMs remained at 2.8%. A year ago, 30-year fixed rates averaged 3.51%, more than 0.75% higher than today. “As the market reacts to a new administration in Washington and COVID-19 driven economic malaise, mortgage rates continued to decrease this week, just slightly. Even as house prices increase at the fastest rate we’ve seen in years, competition to buy is strong given the low inventory that exists across the country. The fact that there are not enough homes to meet demand is going to be an ongoing issue for the foreseeable future,” 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.

The Feds met and with no economic improvement in sight- mortgage interest rates should remain low.

January 27th, 2021

The US Federal Reserve Bank announced its key interest rate decision at the end of its meeting today. Fed chairman, Jerome Powell, also offered some indication as to the Fed’s future decisions through the year.

In a widely expected move, the Fed left the target for the federal funds rate unchanged at a range of 0%-0.25%. The committee stated it is seeking to achieve and maintain maximum employment and inflation at the rate of 2% in the long run. The committee has stated, however, that it will aim to achieve inflation moderately above 2% for some time, so longer-term expectations remain anchored at 2%.

“The COVID-19 pandemic is causing tremendous human and economic hardship across the United States and around the world. The pace of the recovery in economic activity and employment has moderated in recent months, with weakness concentrated in the sectors most adversely affected by the pandemic,” a Press release announcing the decision read. “Weaker demand and earlier declines in oil prices have been holding down consumer price inflation. Overall financial conditions remain accommodative, in part reflecting policy measures to support the economy and the flow of credit to US households and businesses.”

The Press release stated the Fed will continue its purchases of bonds and mortgage backed securities at a rate of $80 billion and $40 billion per month respectively. This comes after some noise from Fed members about slowing these quantitative easing measures which, in the past, have provoked tapering in the markets.

“The path of the economy will depend significantly on the course of the virus, including progress on vaccinations,” the release read. “The ongoing public health crisis continues to weigh on economic activity, employment, and inflation, and poses considerable risks to the economic outlook.”

Rates begin to rise

January 22nd, 2021

Although rates are rising, ABBA First Mortgage has continued to offer some of the lowest rates in Wilmington NC despite the sudden change of direction in the MBS.

For the week ending January 14, Freddie Mac announced that 30-year fixed rates rose to 2.79% from 2.65% the week before. The average for 15-year loans also increased to 2.23% and the average for five-year ARMs rose sharply to 3.12%. A year ago, 30-year fixed rates averaged 3.65%, more than 0.75% higher than today. “As Treasury yields have risen, it is putting pressure on mortgage rates to move up. While rates on home loans are expected to increase modestly in 2021, they will remain inarguably low, supporting homebuyer demand and leading to continued refinance activity. Borrowers are smart to take advantage of these low rates now and will certainly benefit as a result,” 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 on the rise since Election Day in Georgia

January 15th, 2021

Rates hit another low last week, however this data did not reflect the increase which took place later in the week.  For the week ending January 7, Freddie Mac announced that 30-year fixed rates fell two ticks to 2.65% from 2.67% the week before. The average for 15-year loans also decreased to 2.16% and the average for five-year ARMs rose to 2.75%. But on the day of the election in Georgia as Democrats gained two more seats in Congress, there has been a reversal in rates that we haven’t seen since President-elect Joe Biden won the election on November 4th 2020.  Rates have worsened to the highs that we saw back in July of 2020, giving back all the betterment that we’ve enjoyed these 7 months.  A year ago, 30-year fixed rates averaged 3.44%, approximately 1.00% higher than today. “A new year, a new record low mortgage rate. Despite a full percentage point decline in rates over the past year, housing affordability has decreased because these low rates have been offset by rising home prices. However, the forces behind the drop in rates have been shifting over the last few months and rates are poised to rise modestly this year. The combination of rising rates and increasing home prices will accelerate the decline in affordability and further squeeze potential homebuyers during the spring home sales season,” said Sam Khater, Chief Economist, Freddie Mac.

May I suggest that if you are considering refinancing or purchasing a home that you give ABBA First Mortgage a call soon as rates are still amongst the all time lows in the history books of mortgage rates since the inception of recording interest rates for mortgages.  Call 910-332-0650 and speak with Rich Biagini for all your mortgage financing 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.

Rates have held steady two weeks in a row but are poised to go up before possibly going lower.

December 17th, 2020

For the week ending December 10, Freddie Mac announced that 30-year fixed rates remained at 2.71% from the week before. The average for 15-year loans also remained the same at 2.26% and the average for five-year ARMs fell to 2.79%. A year ago, 30-year fixed rates averaged 3.73%, more than 1.00% higher than today. “Rates on home loans remain at record lows, resisting their typical correlation to Treasury yields, which have recently been moving higher. Mortgage spreads – the difference between rates on home loans and the 10-year Treasury rate – are declining from their elevated levels earlier this year. Although today’s spread is about 1.8 percent and still has some room to move down if the 10-year Treasury continues to rise, it’s encouraging to see that the spread is almost back to normal levels,” said Sam Khater, Chief Economist, Freddie Mac.

Always check NC mortgage rates at www.abbafirst.com for the up to the day rate for Wilmington NC rates.  We offer low mortgage rates for Conventional, FHA, VA, USDA purchases or refinances and work with borrowers whether seasoned purchasers or first time home buyers.  Please call us at toll free at 866-676-3349 or email Rich at richsr@abbafirst.com

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.

ABBA First posts lowest rates ever for purchases!

December 9th, 2020

When browsing through several wholesale lenders to choose between for the lowest rates from across the country, ABBA First is excited to be able to post rates that are lower than anything that they’ve not only ever posted, but that they’ve ever seen.  If you are considering purchasing a home, NOW is the time to do it!  And refinance rates aren’t that far behind the lowest rates that offered on their website for those that are purchasing.  There are no “catches” but of course you must be a qualified borrower to obtain the best rates being quoted.  Please call 910-332-0650 and see what rate you are eligible for and allow ABBA First to meet your needs and desires with the lowest rate and terms (fees) available in the market based upon your qualifications.  Rich and Maureen Biagini are happy to work with you and for you to serve you well and treat you as they themselves would want to be treated.  Call 910-332-0650 or go to www.abbafirst.com and see for yourself the wonderful opportunity that you too may be able to take full advantage of.

30 year mortgage rates on the rise

November 19th, 2020

“If you’re ever going to refinance your home, NOW is the time to do it.  With indicators pointing to rates on the rise in 2021, why wait?  If your looking for low interest rates in Wilmington, NC for refinancing or low rates for purchasing of a new home whether it be a primary, second home or investment property in NC or TN, call ABBA First Mortgage at 910-332-0650 and be treated to our excellent service known throughout all of NC and TN.  You’ll be pleasantly surprised by the level of superior excellence in processing your loan and with regard to our rates and terms- we are second to none.  Check us out at   www.abbafirst.com   or email me,    richsr@abbafirst.com    for your personal quote.”  Rich Biagini Sr.

American homeowners will refinance home loans worth nearly $1.8 trillion this year as they lock in historically low rates. However, the window of opportunity for refinancing into super-cheap loans could be closing. Many housing economists now expect rates on home loans to edge up gradually from recent record lows. Mike Fratantoni, chief economist at the Mortgage Bankers Association (MBA), said that he expects the average rate on a 30-year loan to rise to 3.5 percent by the end of 2021. If the scenario plays out as he predicts, refinancing will lose its appeal for many homeowners. The MBA expects refi volume to fall to $946 billion in 2021 and to $573 billion in 2022.

“Looking back on this, years from now, you will remember 2020 as an absolute banner year for this industry,” Fratantoni said. A 3.5 percent home loan is still low by historical standards. However, it would be high enough that far fewer homeowners would be enticed into refinancing. A key assumption in the MBA’s forecast is that the U.S. economy will continue its robust recovery. Unemployment soared to 14.7 percent in April but fell to 7.9 percent as of September. Fratantoni expects unemployment to continue to decline, hitting 7.5 percent this year and 6 percent next year. That’s still high, but well below the calamitous levels of joblessness early in the coronavirus crisis. A worldwide wave of stimulus packages also plays into the forecast. The U.S. government has spent trillions of dollars on such stimulus initiatives as generous unemployment benefits and forgivable loans to employers.

Source: BankRate

Home prices going up while rates are at all time lows.

November 16th, 2020

Prices for single-family homes across the US increased 12% in the third quarter, the biggest annual jump in seven years, according to the National Association of Realtors.

The cost of housing is rising everywhere, adding to affordability concerns as millions of Americans lose income during the pandemic. Prices rose from a year earlier in all 181 metropolitan areas measured by the group, and 117 regions had double-digit gains, compared with only 15 in the second quarter, according to a report Thursday.

Mortgage rates near record lows have fueled a surge in demand as buyers compete for an increasingly scarce supply of listings. Many are rushing to the suburbs, looking for more space to quarantine in comfort. Unless borrowing costs fall much further, first-time buyers will increasingly get priced out of homeownership.

“Favorable mortgage rates will continue to bring fresh buyers to the market,” said Lawrence Yun, chief economist of the Realtor’s group. “However, the affordability situation will not improve even with low interest rates because housing prices are increasing much too fast.”

The nationwide median price of a single-family home in the quarter was $313,500, according to the report.

Fairfield County, Connecticut — home of tony enclaves like Greenwich, as well Bridgeport, one of the state’s poorest cities — had the biggest increase in prices, with 27.3%. Following were Crestview, Florida; Pittsfield, Massachusetts; Kingston, New York; Atlantic City, New Jersey; and Boise, Idaho.

At the end of the quarter, 1.47 million previously owned homes were available for sale in the US, 19.2% fewer than a year earlier. It would take just 2.7 months to sell those homes at the current rate of deals.

From MPA (Mortgage Professional America)  November 14th (Copyright Bloomberg News)

Rates continue to remain low

November 12th, 2020

ABBA First Mortgage enjoys working with clients as they seek to lower their interest rate from an already low rate to a rate that may be lower due to the fact that rates are the lowest ever!  If you think that you’d like to see if you qualify for a better rate than what you’ve already got, please give us a call and let’s see if refinancing is worth it with reduced closing costs and a new lower monthly payment.

For the week ending November 5, Freddie Mac announced that 30-year fixed rates fell to 2.78% from 2.81% the week before. The average for 15-year loans remained at 2.32% and the average for five-year ARMs rose slightly to 2.89%. A year ago, 30-year fixed rates averaged 3.69%, almost 1.00% higher than today. “Rates on home loans hit another record low, the twelfth time this year, due to economic and political ambiguity. Despite the uncertainty that we’ve all experienced this year, the housing market, buoyed by low rates, continues to be a bright spot,” 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 are staying low even after the election

November 5th, 2020

For the week ending October 29, Freddie Mac announced that 30-year fixed rates rose one tick to 2.81% from 2.80% the week before. The average for 15-year loans decreased slightly to 2.32% and the average for five-year ARMs rose slightly to 2.88%. A year ago, 30-year fixed rates averaged 3.78%, almost 1.00% higher than today. “The record low interest rate environment is providing tangible support to the economy at a critical time, as housing continues to propel growth. Strong purchase demand is helping to lift the construction, manufacturing and transportation industries that build new homes and it is also leading to more consumer spending for owners, who are selling or improving their homes. On the refinance front, many consumers are smartly taking advantage of the ability to lower their monthly payment, which means they can spend, save or pay down debt more so than they have in the past,” 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.