Orawin T. Velz, Director of Economic and Strategic Research with Fannie Mae, says “rising mortgage rates and falling affordability have spurred interest in ARMs.”
The reason for this shift is that ARMs help boost purchasing power by lowering the monthly mortgage payment.
If you are interested in detailed analysis regarding changes in mortgage markets, Ms. Velz analysis will be of interest to you.
Read Ms. Velz commentary: Enhancing Affordability Through Adjustable Rate Mortgages: Not What It Used to Be.
Can you benefit from an ARM?
An adjustable-rate mortgage (ARM) is not for everyone. But as Ms. Velz points out, it’s gaining in popularity among borrowers.
To see if an ARM can benefit you, please contact us for a Free Mortgage Checkup.