Meanwhile, the average rate for a kind of adjustable rate mortgage — a 5/1 ARM — dropped to 6.33% from 6.49%.
(Freddie Mac, which provides an average that CNN covers weekly, does not track interest rates for adjustable rate mortgages).
When Treasury yields go up, so do mortgage rates; when they go down, mortgage rates tend to follow.
Fixed rate vs ARMWhile the overwhelming share of loans are still fixed-rate mortgages, ARMs are becoming more attractive in the current higher-rate environment.
Generally, homeowners with higher mortgage rates will pay more in interest rather than principal for a longer time than those with lower interest rates.
Persons:
—, Freddie Mac, ”, Bob Broeksmit, Melissa Cohn, Cohn, National Association of Home Builders —, ” Cohn, Kaylin Dillon, Jay Zigmont, ’ ” Zigmont, you’re
Organizations:
DC CNN, Mortgage, Association, CNN, “, ARM, Fed, Federal Reserve, William, Treasury, Mortgage Bankers Association, National Association of Realtors, National Association of Home Builders, Childfree
Locations:
Washington, Israel, Kansas, Mississippi