The ARM Will Rise Again... Probably

Posted To: MND NewsWire

To paraphrase Mark Twain, reports of the demise of the ARM may have been greatly exaggerated . The market share of ARMs (adjustable rate mortgages) dropped to 2 percent of originations and have fluctuated between 5 and 13 percent since, rising when fixed-rates rise and falling when those rates decline. In the first quarter of this year they accounted for 8 percent of originations. Contrast this with the 45 percent share ARMs represented in mid-2005. However, as Archana Pradhan CoreLogic senior professional economist, writes in the company's Insights blog, if fixed-rate mortgage (FRM) rates increase in the coming year, it is likely the ARM share will as well. Despite their small percentages in the larger universe of mortgage originations, ARMs have consistently been a significant factor for...(read more)

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from Mortgage News Daily http://ift.tt/2wTgLps