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ABBA First Mortgage News

Steady rates turn to rising rates as we head into September

Although we’ve seen a steady market with very little change in interest rates, yesterday August 31st, saw the beginning of a downward slide once again and our stance is to take the best rate that is being offered NOW rather than hold out for what you might possibly think may be a better rate. Next week marks the end of the extended unemployment benefits which could possibly lead to additional housing availability.

For the week ending August 26, Freddie Mac announced that 30-year fixed rates remained at 2.87%, the same as the week before. The average for 15-year loans rose one tick to 2.17% and the average for five-year ARMs decreased slightly to 2.42%. A year ago, 30-year fixed rates averaged 2.91%, slightly higher than today. Attributed to Sam Khater, Chief Economist, Freddie Mac – “The tug-of-war between the economic recovery and rising COVID-19 cases has left mortgage rates moving sideways over the last few weeks. Overall, rates continue to be low, with a window of opportunity for those who did not refinance under three percent. From a homebuyer perspective, purchase application demand is improving, but the major obstacle to higher home sales remains very low inventory for consumers 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.

 

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