| Search by tag or site | Login to my blog ▪ Start my own blog |
 |
The Boston Real Estate BlogI am an independent real estate broker, focused on the residential real estate market in downtown Boston. |
Borrowers Turn To Fixed-rate Mortgages
One of the big unknowns in residential real estate is what effect adjusting-rate mortgage loans will have on the real estate market, and on the entire US economy, as well.
The good news? For Massachusetts, it's that we weren't one of the top ten states to write adjustable-rate mortgage loans, last year.
The even better news? Less people took out ARMs in late 2006, than in previous years.
Is it enough to dodge the very big bullet facing many loan borrowers?
We will see ...
Adjustable-rate mortgages are decreasing in popularity, but don't count them out just yet.
New ARMs dropped to a 25 percent share of the market late last year, according to Freddie Mac’s annual ARM survey. That’s down from a high of 33 percent in 2004.
While one-year ARMs have fallen out of favor, hybrid ARMs have not. For example, 40 percent of all ARMs in the 2006 survey were "5/1&8243; hybrids, according to Freddie Mac, with an average initial rate of 5.96 percent fixed for the first five years. Most of them never get past the reset date because they're either refinanced or paid off, according to Frank Nothaft, chief economist for Freddie Mac.
In areas of the country where housing costs are high, ARMs are still popular. Here are the top 10 states by share of adjustable-rate mortgages, according to the Mortgage Bankers Association:
1. Nevada: 43 percent
2. California: 40 percent
3. District of Columbia: 35 percent
4. Arizona: 33 percent
5. Florida: 33 percent
6. Colorado: 33 percent
7. Illinois: 28 percent
8. Washington: 27 percent
9. Maryland: 26 percent
10. Virginia: 26 percent
Source: Top 10 States Where ARMs Remain Popular - By Kenneth Harney, Washington Post, by way of Realtor.org
More posts about: mortgages finance and home economicsmortgages finance and home economics
- Where Small People Fear To Tread …
- Looking For Real Estate Agents / Bloggers
- Boston Residential Real Estate Condo Sales, October 6, 2007
- Us Gained Jobs In August & September … Did You Expect Otherwise?
- Mousy, Mousy, Mousy: City Of Boston Most At Risk For Rodent Infestation
- Oct 2007
- Sep 2007
- Aug 2007
- Jul 2007
- Jun 2007
- May 2007
- Apr 2007
- Mar 2007
- Feb 2007
- Jan 2007
- Dec 2006
- Nov 2006
- Oct 2006
- Sep 2006
Why I traded the stock ME today. I had it on my list fr [read more]
NOTE: Please click on the charts below to enlarge them if [read more]
NOTE: Please click on the charts below to enlarge them if [read more]
<< My Home | TheMoneyBlogs Home