3 ms·

That doesn't sound right. The rate is fixed till the renewable period, typically 5 or fewer years.

dragonwriter 5y ago
> That doesn't sound right. It is. > The rate is fixed till the renewable period, typically 5 or fewer years. Lenders and mortgage brokers will often heavily push loans like that, ARMs with a short initial fixed period, using the (usually slightly) lower initial rate and the prospect of refi before the float as a hook, but full-term fixed-rate mortgages are still more popular.
- glitchc 5y ago
  Assertion requires evidence. This graph disagrees with you: https://fred.stlouisfed.org/series/MORTGAGE30US https://fred.stlouisfed.org/series/MORTGAGE30US
  - ILMostro7 5y ago
    That's the mortgage interest rate, not the percentage of 30-year fixed rate mortgages vs. ARM. Categories > Money, Banking, & Finance > Interest Rates > Mortgage Rates Unless you're not arguing against the last part of the parent comment...
  - dragonwriter 5y ago
    > This graph disagrees with you: No, it doesn't. That's a chart of the average annual interest rate of 30 year mortgages, not the share of mortgages that are 30 year mortgages. EDIT: The Mortgage Bankers Association does regular press releases of stats [0], and in them recently ARMs seem to be 3-3.5% of applications. [0] e.g., https://www.mba.org/2022-press-releases/january/mortgage-applications-increase-in-latest-mba-weekly-survey https://www.mba.org/2022-press-releases/january/mortgage-app...
  - quickthrowman 5y ago
    That is a chart of the interest rate of 30 year fixed rate mortgages in the United States. What does that have to do with the ratio of fixed rate to adjustable rate mortgages?
secabeen 5y ago
Not in America. Here's a graph of the market share of 30-year fully fixed rate mortgages between 1996 and 2010: https://academic.oup.com/view-large/figure/114328487/hhu060f2.png https://academic.oup.com/view-large/figure/114328487/hhu060f...

> That doesn't sound right. It is. > The rate is fixed till the renewable period, typically 5 or fewer years. Lenders and mortgage brokers will often heavily push loans like that, ARMs with a short initial fixed period, using the (usually slightly) lower initial rate and the prospect of refi before the float as a hook, but full-term fixed-rate mortgages are still more popular.

glitchc 5y ago
Assertion requires evidence. This graph disagrees with you: https://fred.stlouisfed.org/series/MORTGAGE30US https://fred.stlouisfed.org/series/MORTGAGE30US
- ILMostro7 5y ago
  That's the mortgage interest rate, not the percentage of 30-year fixed rate mortgages vs. ARM. Categories > Money, Banking, & Finance > Interest Rates > Mortgage Rates Unless you're not arguing against the last part of the parent comment...
- dragonwriter 5y ago
  > This graph disagrees with you: No, it doesn't. That's a chart of the average annual interest rate of 30 year mortgages, not the share of mortgages that are 30 year mortgages. EDIT: The Mortgage Bankers Association does regular press releases of stats [0], and in them recently ARMs seem to be 3-3.5% of applications. [0] e.g., https://www.mba.org/2022-press-releases/january/mortgage-applications-increase-in-latest-mba-weekly-survey https://www.mba.org/2022-press-releases/january/mortgage-app...
- quickthrowman 5y ago
  That is a chart of the interest rate of 30 year fixed rate mortgages in the United States. What does that have to do with the ratio of fixed rate to adjustable rate mortgages?

secabeen 5y ago

Not in America. Here's a graph of the market share of 30-year fully fixed rate mortgages between 1996 and 2010: https://academic.oup.com/view-large/figure/114328487/hhu060f2.png https://academic.oup.com/view-large/figure/114328487/hhu060f...