December 20th, 2018
The percentage of homeowners who purchased ARMs in November was at its highest level (8.9) in November since 2011, when Ellie Mae started tracking that data. This is mostly due to increasing interest rates. Overall, the share of refinances remained low in November (30%), and the percentage of purchase loans gained 2% from October to reach the 70% mark.
Borrowers are starting to reconsider different loan options that they have been wary of since the 2008-09 market crash. Although you need to be more careful and transparent when approaching ARM options, ARMs can be a fantastic tool to separate you from your competition and save borrowers a lot of money in this rising rate market.