2 ms·
Wait for all the 2.x% 7/1 and 5/1 jumbo ARMs issued between 2015-2022 to renew at 7%+ and we'll see how strong the mortgage market actually is.
by paxys 2y ago
Wait for all the 2.x% 7/1 and 5/1 jumbo ARMs issued between 2015-2022 to renew at 7%+ and we'll see how strong the mortgage market actually is.
- selectodude 2y agoAll? I’d be shocked if 5 percent of mortgage originations in the US are ARMs.
- eightysixfour 2y agoThey were very low leading into the increased interest rates - 4% in 2021. In 2023 it was closer to 10% of originations. https://www.investopedia.com/arm-applications-grow-as-mortgage-rates-remain-high-8350836 https://www.investopedia.com/arm-applications-grow-as-mortga...
- drewg123 2y agoAccording to https://point.com/blog/arm-report-2024 https://point.com/blog/arm-report-2024, ARMs were 10-20% of mortgages 2015-2020 So I think the GP has a good point.
- rib3ye 2y agoWhere is the ARM mortgage data?
- jandrese 2y agoWhy the hell would you get an ARM when the fixed rate was 3%? The only way to go from there is up.
- dylan604 2y agoThere are a lot of people just uninformed people that will take whatever deals presented when that deal means getting a house. The person giving them the deal does not care at all about whether they can afford it or not, especially knowing that the loan was going to be repackaged and sold probably before the first payment was due let alone when the rates change
- jancsika 2y agoWell, 2015 was about 10 years ago now, and both 5 and 7 are less than ten. So how about you tell us how some of them have already done renewing at 6%+? Did bad things happen? Edit: clarification