Mortgages - ARMs versus fixed-rate mortgages
Over one-third of mortgage applicants last week were using ARMs (adjustable rate mortgages), according to the Mortgage Bankers Association. "That was a record high ARM share, both in the number of loans and in dollar volume," says Mike Cevarr, the association's director of industry surveys.
And, what is happening with interest rates on mortgages? Actually, Barnkrate.com reports that "the benchmark 30-year fixed-rate mortgage fell 2 basis points to 6.13%. The mortgages in this week's survey had an average total of 0.31 discount and origination points. One year ago, the mortgage index was 5.60%."
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