Mortgage Blog

I did not predict the rate recently. And I know
it will be a little bit lower till the end of
this year.

The interesting part is another prediction I made
last year. This is about the ARM convert to 15 yr fixed.

A lot of my clients got 2.375% to 2.5% ARM rates
for 400k loans. And some people will change it to
15 yr fixed if the 15 yr fixed rate will be
in the similar range.

And yesterday I locked 6 loans with the rate 2.75%
for 15 yr fixed(I don't have this rate today).
We will see the similar trend coming in the next a
few months.

Since ARM rate will go nowhere, if the 15 yr fixed
rates going lower, then the rate will be similar.
But usually when ARM rate and 15 yr fixed are so close,
it will suggest another recision. But so far I did
not see this possibility in USA yet.