Tag Archives: ARM

As housing affordability continues its decline, the latest analysis from First American projects home price appreciation to fall further as the booming sellers’ market seen in early 2022 has now turned in favor of homebuyers.

Adjustable-rate mortgages are regain popularity, but borrowers who don't understand the risks could end up forced into default or foreclosure.

Two recently released reports show the state of mortgage rates across the country. How did they fare comparatively week-over-week, month-over-month, and year-over-year?  

Freddie Mac's weekly Primary Mortgage Market Survey, released Thursday, shows the average rate for a 30-year fixed-rate mortgage (FRM) falling to 4.14 percent (0.5 point) for the week ending June 26, a continued slide from 4.17 percent last week. A year ago, the 30-year fixed average was 4.46 percent, an increase of more than half a percentage point over the week prior.

News of worse-than-expected first-quarter economic growth brought fixed mortgage rates down this week, according to market reports. In its weekly Primary Mortgage Market Survey,Freddie Mac recorded the average 30-year fixed rate at 4.29 percent (0.7 point) for the week ending May 1, down from 4.33 percent. Last year, the 30-year rate was down at 3.35 percent.

The average 30-year fixed mortgage rate came up to 4.33 percent (0.6 point) for the week ending April 24, up from 4.27 percent in the previous week, according to Freddie Mac’s latest Primary Mortgage Market Survey. Last year, the 30-year fixed-rate mortgage (FRM) averaged 3.40 percent, almost a full point lower. The 15-year FRM this week averaged 3.39 percent (0.6 point), moving up from 3.33 percent.

Per Freddie Mac’s Primary Mortgage Market Survey, the 30-year fixed rate mortgage (FRM) this week averaged a rate of 4.27 percent (0.7 point), down from 4.34 percent last week. A year ago, the 30-year FRM sat at 3.41 percent. At the same time, the 15-year FRM averaged 3.33 percent (0.6 point), down from an average 3.38 percent.

Freddie Mac's weekly Primary Mortgage Market Survey, released Thursday, showed the 30-year fixed-rate mortgage (FRM) averaging 4.32 percent (0.6 point) for the week ending March 20, down from last week, when it averaged 4.37 percent. A year ago, the 30-year FRM average was 3.54 percent.

Homeowners who refinance continue to overwhelmingly opt for fixed-rate mortgages, and by historical standards, fewer homeowners are using refinances as a means of putting more cash in their pockets, according to Freddie Mac's 2013 Second Quarter Refinance Report. More than 95 percent of homeowners who refinanced their mortgage loans in the second quarter of this year chose fixed-rate loans. At the same time, ""[t]he cash-out amount, while increasing, continues to remain low by historical standards,"" according to Frank Nothaft, VP and chief economist at Freddie Mac.

With the sudden jump in mortgage rates, market spectators are wondering what the impact might be on the housing recovery. After analyzing previous instances when mortgage rates increased significantly, Mark Palim, VP of Fannie Mae's Economic and Strategic Research Group, determined history suggests rate increases won't stop the current recovery. Instead, a rapid rise in rates is ""more likely to contribute to a decrease in home purchase volume and an increase in the market share of adjustable-rate mortgages (ARMs),"" wrote Palim in a recent commentary.