Boston condo market and mortgage options
In the mid-1990s when 30-year fixed mortgage rates climbed over 9%, ARM usage jumped to 35% of all mortgages. In 1999-2000 as 30-year fixed mortgage rates shot above 8%, ARM usage raged once again to 34% of all mortgages. For comparison, the percentage of homebuyers using ARMs today is just 9%, even as housing affordability resides near its all-time worst and 30-year fixed-rate mortgages have more than doubled in the span of 19 months.
Will Adjustable Rate Boston Condo Mortgage Make a Come-back?
In the next 3-6 months, will the mortgage industry will be heavily advertising alternative mortgage options like the short-term (5-year and 7-year) fixed rate.
Is the Fed Trying to Cause a Recession?
One can easily predict that the Fed is going to deliberately cause a recession in the next 1-2 years, and will have to lower rates again – and continue their biggest boondoggle in history. Anyone who buys with an adjustable-rate mortgage can refinance to a lower 30-year fixed rate then.
Can a ARM be the right move for Boston condo buyers?
I’ve noticed many Boston condo buyers have only been thinking about getting a 30-year fixed, and are slow to consider an ARM. But it might be a good option to think about.