ARM applications rise as 30-year fixed rates exceed 7%
- 1According to the Mortgage Bankers Association (MBA), ARM applications accounted for 10.3% of MBA mortgage applications for the week ending October 2.
- 2ARM rates offer levels 1 percentage point lower than existing 30-year fixed mortgages.
- 3Bankrate stated that refinancing costs range from 2% to 5% of the new loan amount.
So what's the key point?
As 30-year fixed rates surpassed 7%, the proportion of people applying for adjustable-rate mortgages rose to 10.3%. These are being chosen because the rates are 1 percentage point lower than existing loans.
Source CNBC · View original ↗
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