adjustable rate mortgage

ARM Rush Pushes Mortgage Applications Up

Posted on by TMN Editor
Mortgage applications rose slightly last week, driven by an increase in adjustable-rate applications. The Mortgage Bankers Association’s weekly survey shows the adjusted Market Composite Index – a measure of mortgage loan application volume – increased by 0.6%. Mortgage rates shot up for all loan types but adjustable-rate mortgages, leading to a rush on these loans, which boosted overall volume.  ARM applications jumped by 15% in just one week, pushing them to a 9.2% share of all applications, their highest level since November 2022. Adjusted purchase applications inched up 1%, while the unadjusted index rose by 1% from the week before and was 19% lower YOY. “The yield curve has become less inverted in recent weeks and ARM pricing has certainly…

Adjustable-Rate Mortgages Poised To Make A Comeback?

Posted on by TMN Editor
By SCOTT KIMBLER It is being reported that the typical homebuyer could save an estimated $15,582 over five years if they take out an adjustable-rate mortgage and some borrowers are wondering if the risks are worth the rewards. On Friday, Redfin published an article by Lily Katz and Taylor Marr which stated that demand for adjustable-rate mortgages is on the rise because they typically have lower interest rates than 30-year fixed loans. The Redfin analysis used the estimated monthly mortgage payment on a median asking price home during the four weeks ending May 12. The amount used for calculations was $410,700. The analysis found that the monthly payment for buyers who took out a 5/1 ARM was an estimated $2,164…