U.S. fixed mortgage rates rise, ARMs fall

One-year Treasury-indexed ARMs averaged 5.60%, down from 5.65% last week. The ARM averaged 5.47% a year ago. To obtain the rates, the fixed-rate mortgages as well as the 5-year ARM required payment of an average 0.5 point. The 1-year ARM required payment of an average 0.6 point. A point is 1% of the total mortgage amount, charged as prepaid interest.

“Though it is the fourth consecutive week rates on ARMs have declined, the share of mortgage applications for ARMs has been trending down, and last week reached its lowest level since March 2003, according to the Mortgage Bankers Association,” Nothaft said. Last week, adjustable-rate mortgages made up 12.2% of all applications, down from 12.6% the previous week, the MBA’s weekly survey showed on Wednesday. See full story.

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