Demand for riskier home loans is high as interest rates soar
Mortgage demand dropped again last week as rates climbed higher, but adjustable-rate mortgages, or ARMs, which offer lower rates , are seeing renewed demand after getting very little interest over the last decade. Total mortgage application volume dropped 2% last week compared with the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index, a consequence of surging rates. The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($647,200 or less) increased to 6.81% from 6.75%, with points increasing to 0.97 from 0.95 (including the origination fee) for loans with a 20% down payment. That is the highest rate since 2006. How to navigate the housing market roller coaster and ease stress Oct. 7, 2022 03:02 “The news that job growth and wage growth continued in September is positive for the housing market, as higher incomes support housing demand. However, it also pushed off the possibility of any near-term pivot f...