According to the twenty fourth annual Adjustable Rate Mortgage Survey done by Freddie Mac the starting rates for ARMs have not changed much from what they were at the time of 2006 survey even after Federal Reserve has lowered federal funds target. In comparison to it fully indexed rates have fallen to their lowest rates in 3 years, causing erosion in rate discounts that are offered initially on the mortgage & were common in 2006 & 2007 time period.
The survey was done during December 17 to December 21 & was based on data from 112 Adjustable Rate Mortgage lenders.
In the survey it was also found that market share of ARMs is going down because interest rate savings compared to FRMs has narrowed in the last few years. In addition to it lenders are now offering smaller discounts on rates for introductory adjustable rate mortgages.
Tuesday, January 22, 2008
ARMs are less appealing now
