Mortgage Rates 'Turned On Their Head'
For the first time since 1984, adjustable rate mortgages have higher interest rates than fixed-rate mortgages, according to The Washington Post. A recently released Freddie Mac survey shows that mortgages that adjust in one year have been more expensive over the last two weeks, averaging 4.82 percent compared with 4.8 percent on a 30-year fixed rate loan.
Traditionally, fixed-rate loans were more expensive because lenders took on more risk by financing it. But now things are different.
From The Post:
“The landscape has changed. The mortgage market collapsed. Investors lost their appetite for adjustable loans, which have been closely tied to soaring foreclosure rates. And the Federal Reserve adopted policies aimed at driving mortgage rates down.”
This article originally published at https://dc.urbanturf.com/articles/blog/mortgage_rates_turned_on_their_head/835.
Most Popular... This Week • Last 30 Days • Ever
DC's homebuyer assistance programs can be a bit complex. This edition of First-Timer ... read »
DC and Virginia lead the way in terms of where prices have risen the most this year.... read »
When it comes to financing a home purchase, a 30-year mortgage is one of the most com... read »
Pocket listings are growing in popularity in the low-inventory market in the DC regio... read »
Margarite is a luxury 260-apartment property known for offering rich, high-end reside... read »
DC Real Estate Guides
Short guides to navigating the DC-area real estate market
We've collected all our helpful guides for buying, selling and renting in and around Washington, DC in one place. Start browsing below!
First-Timer Primers
Intro guides for first-time home buyers
Unique Spaces
Awesome and unusual real estate from across the DC Metro