Tag Archives: adjustable-rate mortgages (ARMs)

As the fixed-rate mortgage edges closer to 7% and still over a percentage point higher year-over-year, the MBA reports that overall mortgage application volume fell to its lowest level in a month.

Overall rate lock volumes rose 14% in May from the prior month, but that number is still down 38% year-over-year and 29% compared to pre-pandemic numbers.

An Urban Institute report claims recent fears about adjustable-rate mortgages are unfounded, suggesting that the lending tool should be utilized more often.

"With interest rates now at their highest level in 20 years, the refi market is rapidly approaching a bottom," said Scott Happ, President of Optimal Blue, a division of Black Knight.

As overall mortgage rates edge closer to 7%, mortgage app volume experienced their fourth consecutive month of declines, with an uptick in ARM loans demonstrating that they remain a feasible option for borrowers seeking ways to reduce their monthly payments.

With mortgage rates spiking upward, mortgage application volume took another hit, falling for the fourth consecutive week, as markets continued to re-assess the prospects for the economy and the path of monetary policy.

An erratic mortgage rate market has not necessarily been a “farewell to ARMs,” as Zillow reports the share of ARM apps hit a 15-year high point, comprised primarily of those making nearly $75,000 more than the average borrower.

As June recognizes National Homeownership Month, Chris Garagusi of Enact details ways that lenders can help borrowers find their way in a challenging and confusing housing market.

Consistently rising mortgage rates are forcing many refi borrowers to reconsider, as refinance activity is down 66% year-over-year according to the MBA.

Overall mortgage app volume rose for a second straight week, with continued interest in ARMs amid an environment of rising rates.