Real Estate Culture
  • Home
  • What is My Home Worth?
  • About
  • Contact
  • FIRST TIME HOMEBUYER SEMINAR - REGISTER

Real Estate is a LIFESTYLE

  Real Estate is indeed a lifestyle.  From contemporary layouts & interior design/decor, the rise and fall in economic markets, turn key and rehab properties - to know & understand the grit of real estate is to love what it represents.  Home.  Value.  Wealth.  Security blanket.  Personal accomplishment.  
Enjoy the information on this site, and refer your family and friends to indulge in Real Estate Culture!

Homebuyers Rush to Riskier Mortgages as Home Prices Heat Up #finance #realestate #mortgage #investment

10/13/2017

0 Comments

 
Picture
Source:  CNBC

Home prices are heating up yet again, and that is sending more potential buyers looking for ways to afford a monthly mortgage payment.  The number of adjustable-rate mortgage originations jumped just over 40 percent from the first quarter of this year to the second, according to analysis by Inside Mortgage Finance.  ARMs offer lower interest rates than fixed-rate loans, and today's ARMs usually have a fixed period of at least five years.  That means the rate can change after five years.  Still ARMs are considered riskier than the classic 30-year fixed mortgage.

The average contract interest rate on 30-year-fixed mortgages with conforming balances was 4.11 percent last week, according to the Mortgage Bankers Association.  Compare that with the rate on a five-year ARM, which was 3.38 percent.  The rate on an adjustable-rate loan, by definition, will change after the fixed period, moving higher or lower, depending on the broader market rate.

ARM demand usually rises from the first quarter to the second quarter, because spring is the busiest season for homebuying, and it's when families dominate the market, searching for bigger, higher-priced homes.  Still, the jump in ARMs in the spring of 2016 was 15 percent compared with this year's 40 percent jump.  This makes the case that buyers this year are struggling with a affordability and opting for a lower-rate product.

Check out the full story here:
https://www.cnbc.com/2017/10/03/rising-heat-in-home-prices-makes-buyers-rush-to-riskier-mortgages.html


0 Comments



Leave a Reply.

    Archives

    December 2018
    July 2018
    February 2018
    January 2018
    October 2017
    September 2017
    August 2017
    July 2017
    June 2017
    May 2017
    March 2017
    February 2017
    January 2017
    December 2016
    November 2016
    October 2016
    September 2016

    Categories

    All

    RSS Feed

Powered by Create your own unique website with customizable templates.
  • Home
  • What is My Home Worth?
  • About
  • Contact
  • FIRST TIME HOMEBUYER SEMINAR - REGISTER