ABBA First Mortgage News

Rates begin to rise

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.

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