{"id":3573,"date":"2022-10-20T16:28:33","date_gmt":"2022-10-20T16:28:33","guid":{"rendered":"https:\/\/frankbuysphilly.com\/homebuyers-increasingly-seek-arms-as-mortgage-rates-soar\/"},"modified":"2022-10-20T16:28:33","modified_gmt":"2022-10-20T16:28:33","slug":"homebuyers-increasingly-seek-arms-as-mortgage-rates-soar","status":"publish","type":"post","link":"https:\/\/frankbuysphilly.com\/homebuyers-increasingly-seek-arms-as-mortgage-rates-soar\/","title":{"rendered":"Homebuyers increasingly seek ARMs as mortgage rates soar\u00a0"},"content":{"rendered":"
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Mortgage rates have more than doubled from the beginning of the year and homebuyers facing affordability challenges are increasingly turning to adjustable-rate mortgages (ARMs) to reduce their monthly payments.<\/p>\n
The latest weekly survey data from Freddie Mac<\/strong> shows the 30-year fixed-rate mortgage rose two basis points from last week to 6.94%<\/a>, slowing its upward trajectory this week. A year ago at this time, rates averaged 3.09%.<\/p>\n \u201cThe 30-year fixed-rate mortgage continues to remain just shy of 7% and is adversely impacting the housing market in the form of declining demand,\u201d Sam Khater, Freddie Mac\u2019s chief economist, said in a statement. <\/p>\n The Freddie Mac\u2019s index compiles purchase mortgage rates reported by lenders during the past three days. It\u2019s focused on conventional, conforming, fully amortizing home purchase loans for borrowers who put 20% down and have excellent credit. <\/p>\n Other indexes show higher rates. <\/p>\n On HousingWire\u2019s<\/strong><\/a> Mortgage Rates Center, Black Knight\u2019s<\/strong> Optimal Blue OBMMI pricing engine, which also includes some refinancing products, measured the 30-year conforming rate at 7.026% on Wednesday, up from 6.939% the previous week. Meanwhile, the 30-year fixed-rate jumbo (greater than $647,200) went from 6.549% to 6.746% in the same period.<\/p>\n Mortgage rates were 7.22% <\/a>for conforming and 6.15% for jumbos at Mortgage News Daily<\/strong> on Wednesday, a spread of 107 bps. <\/p>\nARMs pick up steam<\/h2>\n