ABBA First Mortgage News

What will the rates do this week?

Well, we all saw the rates fall to another low last week ending July 22, with Freddie Mac announcing that 30-year fixed rates decreased to 2.78% from 2.88% the week before. Many people jumped on that bandwagon that had their loans already in process and locked in their rate.  Others applied for mortgages hoping to obtain these lows but many banks had already pulled back a little; possibly due to the influx of loans they received and in the hopes of avoiding their staffs from being overwhelmed and delivering poor customer service.  Therefore many lenders raised their rates slightly until they can catch up again with the ebb and flow of underwriting smoothly without being swamped.

The average for 15-year loans fell to 2.12% and the average for five-year ARMs rose slightly to 2.49%. A year ago, 30-year fixed rates averaged 3.01%, .23% higher than today. Attributed to Sam Khater, Chief Economist, Freddie Mac – ” Concerns about the Delta variant, and the overall trajectory of the pandemic, are undoubtedly affecting economic growth. While the economy continues to mend, Treasury yields have decreased, and mortgage rates have followed suit. Unfortunately, many homebuyers are unable to take advantage of low rates due to low inventory and high prices.”

When you’re ready, ABBA First is.  Give us a call to refinance your home soon at 910-332-0650.

 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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