{"id":2360,"date":"2017-03-22T00:00:00","date_gmt":"2017-03-22T00:00:00","guid":{"rendered":"https:\/\/amazingproperty.com.ng\/blog\/arms-rise-in-popularity-as-rates-increase\/"},"modified":"2017-03-22T00:00:00","modified_gmt":"2017-03-22T00:00:00","slug":"arms-rise-in-popularity-as-rates-increase","status":"publish","type":"post","link":"https:\/\/amazingproperty.com.ng\/blog\/arms-rise-in-popularity-as-rates-increase\/","title":{"rendered":"ARMs Rise in Popularity as Rates Increase"},"content":{"rendered":"

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More borrowers are turning to shorter-term adjustable-rate mortgages as interest rates rise, but that may be a riskier move than your clients realize. While these mortgages offer<\/a> lower interest rates, the rates reset after a certain preset time. Still, a five-year hybrid adjustable-rate mortgage<\/a> averaged a 3.28 percent rate last week compared to 4.30 for the 30-year fixed-rate mortgage, according to Freddie Mac’s weekly mortgage market survey.<\/p>\n

The share of ARMs in total mortgage application volume has doubled to 9 percent since November 2016. This marks the highest level of ARM applications since October 2014. “Home buyers in a strong housing<\/a> market are looking for ways to extend their purchasing power, and ARMs are one way to do that,” says Mike Fratantoni, chief economist for the Mortgage Bankers Association. “While the ARM share got as high as 35 percent pre-crisis, it is really unlikely it will get nearly as high now, given [new] regulations, which effectively prohibit many types of ARMs that were prevalent then.”<\/p>\n

Total mortgage application volume\u2014including for home purchases and refinances\u2014dropped 2.7 percent compared to the previous week, the MBA reports. Applications are now nearly 12 percent lower than a year ago. Broken out, refinance applications dropped 3 percent last week, while applications for home purchases fell 2 percent. Applications for home purchases, however, remain up 5 percent compared to a year ago, the MBA reports.<\/p>\n

Source: \u201cMortgage Applications Fall 2.7%, as Borrowers Turn to Riskier Loans<\/a>,\u201d CNBC (March 22, 2017)<\/em><\/p>\n<\/div>\n<\/div>\n

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More borrowers are turning to shorter-term adjustable-rate mortgages as interest rates rise, but that may be … ARMs Rise in Popularity as Rates Increase<\/span>Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":2361,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"advanced_seo_description":"","jetpack_seo_html_title":"","jetpack_seo_noindex":false,"jetpack_seo_schema_type":"","_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[4],"tags":[1403,15239,12908,543,344,1329,408,1032,312,41,818],"class_list":["post-2360","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-opportunities-in-new-markets","tag-buy","tag-chase","tag-home","tag-home-buying-guide","tag-housing","tag-loan","tag-mortgage","tag-mortgage-bank","tag-mortgages","tag-property","tag-real"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2017\/03\/NFu6FImp1d4","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":2091,"url":"https:\/\/amazingproperty.com.ng\/blog\/borrowers-face-higher-mortgage-rates\/","url_meta":{"origin":2360,"position":0},"title":"Borrowers Face Higher Mortgage Rates","author":"Amazing Property","date":"March 17, 2017","format":false,"excerpt":"For the second consecutive week, mortgage rates were on the rise. \"As expected, the [Federal Reserve's Federal Open Market Committee] announced its first rate hike of 2017\u00a0and hinted at additional increases throughout the remainder of the year,\" says Sean Becketti, Freddie Mac's chief economist. \"Although our survey was conducted prior\u2026","rel":"","context":"In "Opportunities In New Markets"","block_context":{"text":"Opportunities In New Markets","link":"https:\/\/amazingproperty.com.ng\/blog\/category\/opportunities-in-new-markets\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":3023,"url":"https:\/\/amazingproperty.com.ng\/blog\/understanding-adjustable-rate-mortgages\/","url_meta":{"origin":2360,"position":1},"title":"Understanding Adjustable Rate Mortgages","author":"Amazing Property","date":"April 5, 2017","format":false,"excerpt":"Question. We are shopping around for a mortgage for our first home and are confused about the many loans that seem to be available. Interest rates are low, real estate appears to be picking up again, and the adjustable rate mortgage is of interest to us. We do not understand\u2026","rel":"","context":"In "Opportunities In New Markets"","block_context":{"text":"Opportunities In New Markets","link":"https:\/\/amazingproperty.com.ng\/blog\/category\/opportunities-in-new-markets\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2017\/04\/d6a3a02f587092a1a7e0a7f6242f226a_M.jpg?fit=300%2C200&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":4973,"url":"https:\/\/amazingproperty.com.ng\/blog\/after-steady-decline-mortgage-rates-rise\/","url_meta":{"origin":2360,"position":2},"title":"After Steady Decline, Mortgage Rates Rise","author":"Amazing Property","date":"June 16, 2017","format":false,"excerpt":"[ad_1] Mortgage rates increased this week for the first time in more than a month, but they still remain near their yearly lows. \u201cThe 30-year mortgage rate rose 2 basis points over the week to 3.91 percent,\u201d says Sean Becketti, Freddie Mac\u2019s chief economist. \u201cHowever, our survey was conducted before\u2026","rel":"","context":"In "Opportunities In New Markets"","block_context":{"text":"Opportunities In New Markets","link":"https:\/\/amazingproperty.com.ng\/blog\/category\/opportunities-in-new-markets\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2017\/06\/rates061517.png?fit=620%2C252&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2017\/06\/rates061517.png?fit=620%2C252&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2017\/06\/rates061517.png?fit=620%2C252&ssl=1&resize=525%2C300 1.5x"},"classes":[]},{"id":7478,"url":"https:\/\/amazingproperty.com.ng\/blog\/despite-fed-move-mortgage-rates-hold-steady\/","url_meta":{"origin":2360,"position":3},"title":"Despite Fed Move, Mortgage Rates Hold Steady","author":"Amazing Property","date":"December 15, 2017","format":false,"excerpt":"Mortgage rates were in a holding pattern this week, even after the Federal Reserve voted Wednesday to hike its benchmark interest rate. \u201cAs widely expected, the Fed increased the federal funds target rate this week for the third time in 2017,\u201d says Len Kiefer, Freddie Mac\u2019s deputy chief economist. \u201cThe\u2026","rel":"","context":"In "Opportunities In New Markets"","block_context":{"text":"Opportunities In New Markets","link":"https:\/\/amazingproperty.com.ng\/blog\/category\/opportunities-in-new-markets\/"},"img":{"alt_text":"Rates121417.png","src":"https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2017\/12\/rates121417.png?fit=620%2C252&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2017\/12\/rates121417.png?fit=620%2C252&ssl=1&resize=350%2C200 1x, 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