Industry News

ARM demand hits 14-year high

Photo by Towfiqu barbhuiya on Unsplash

REALTOR Magazine

More home buyers are reaching for the ARMs. Adjustable-rate mortgages generally offer a lower introductory mortgage rate that is locked in for five, seven, or 10 years before then adjusting.

As mortgage rates rapidly rise, some buyers may be getting priced out, unless they lock in an ARM, which may have an introductory rate closer to the level of fixed-rate mortgages when they started their house hunt.

The average contract interest rate for a 30-year fixed-rate mortgage rose to 5.53% last week. The rate on a 5-year ARM, in comparison, was 4.47%, according to the Mortgage Bankers Association.

Keep reading: ARM Demand Hits 14-Year High

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