The vast majority of adjustable-rate mortgage borrowers chose fixed-rate loans when they refinanced in the second quarter, according to Freddie Mac.Of those borrowers who originally had a one-year ARM, 85% chose a fixed-rate mortgage in the second quarter, as did 86% of borrowers who originally had a hybrid ARM, Freddie Mac said in its Refinance Product Transition Report. "While most borrowers still prefer to refinance into fixed-rate mortgage products, the widening spread between fixed- and adjustable-rate mortgages in the second quarter made ARMs a bit more attractive than they had been," said Amy Crews Cutts, Freddie's deputy chief economist. "With the recent contractions in mortgage lending standards and increasing emphasis on underwriting borrowers to fully indexed rates on adjustable-rate mortgages, it is likely that we will see more demand for fixed-rate products for both new home purchases and refinances in the future." Freddie Mac can be found online at http://www.freddiemac.com.
-
The latest rate increases contributed to a 1% drop in purchases from the previous week and 15% annually, according to the Mortgage Bankers Association.
18m ago -
The top five producers had an average dollar volume of VA and USDA loans of more than $35 million in 2023.
1h ago -
While income decreased from the fourth quarter, it accelerated on an annual basis across NVR's building and lending units.
8h ago -
Many legal experts think the Supreme Court will rule in favor of the Consumer Financial Protection Bureau in a case challenging its funding. Such a ruling would unleash a flurry of litigation that has been on hold pending the outcome of the constitutional challenge.
10h ago -
Prevention through new building standards and mapping technology aim to keep home insurance rates down but mortgage bankers see challenges.
April 23 -
The mortgage lender and servicer announced that Ranjit Bhattacharjee, a capital markets veteran, and Kevin Barker, a financial analyst with two decades of experience, have joined its ranks.
April 23