This Week’s Short Stories

This Week’s Short Stories

ARMs and Refis Making a Comeback

In the coming year it is expected that recent trends will continue with regards to more Adjustable Rate Mortgages and a return of cash-out refinances. As fixed mortgage rates rise, ARMs will be more popular and may be a tool for better ROI for investors. As home values rise, cashing out with refinancing will also resurface.

Mortgage Rates Rise Again

Christmas week mortgage rates rose to three month highs. Best rates listed as:
• 30-year Fixed at 4.625%
• FHA/VA at 4.25%
• 15-year Fixed at 3.5%
• 5-year ARMs at 3.0% to 3.5%
Some borrowers may not see the rate increases, instead paying the freight through higher closing costs.

New Home Sales Strong – Prices Rising

In November, new single family home sales hit a seasonally adjusted rate of 464,000 units. This represents a month-over-month increase for sales in the Northeast, South, and West. Only the Midwest experienced declines.

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