ARM-Backed Home Purchases Are Way Up
CoreLogic says potential homebuyers are being discouraged by rapidly climbing and higher mortgage rates – which, in turn, means tumbling mortgage originations. However, they point that adjustable-rate mortgages (ARMs) are up significantly amid rising interest rates and they say homebuyers & investors are flocking to ARMs for better affordability and yields.
“The adjustable-rate mortgage is typically not most homebuyers’ go-to means for financing their homes due largely to uncertainty in future interest rates. ARM’s loan volume never exceeded 10% in the past 10 years, even as ARM products have become safe, sound and transparent in the post financial crisis era.”
Click here to read the full report at CoreLogic.com.
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