About 1 in 5 mortgage loan applications received by Quicken Loans are from borrowers seeking adjustable-rate mortgage (ARM) loans, Crain’s Detroit Business reports.
Rates on 30-year fixed-rate mortgages averaged 4.4 percent with an average 0.7 point for the week ending Aug. 8, according to Freddie Mac’s latest rate survey.
Rates on five-year Treasury-indexed hybrid ARM loans averaged 3.19 percent with an average 0.5 point, and one-year Treasury-indexed ARMs averaged 2.62 percent with an average 0.3 point.
Quicken Chief Economist Bob Walters points out that homeowners move every seven to 10 years on average, and “all that security they’re paying for with a higher rate generally isn’t used.”
Source: crainsdetroit.com.
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