Dis-ARMed
Once seen as a relatively easy way for buyers to stretch their resources and purchase homes they wouldn’t normally have been able to afford with a conventional mortgage, adjustable rate mortgages have quickly fallen out of favor. A general tightening of the credit market and jitters about home values have caused increasing numbers of buyers to opt for safer, 30-year fixed mortgages. As of last week, interest rates began to reflect this new demand for fixed rate loans, with 30-year loans averaging 6.41 percent, and ARMs at 6.51.
