ICE says ARM share of mortgage rate locks nears 4-year high as 30-year fixed hits 7.2%
TLT•ICE said adjustable-rate mortgages exceeded 11% of rate locks as its Conforming 30-year Fixed Rate Index reached 7.2% on Sept. 24. Active first-lien ARMs rose to 3.1 million, while about 74,000 seven-year ARMs from 2020 are set to reset in 2027 with a median payment increase of $1,066.
1. ARM demand rises
ICE’s Mortgage Monitor flagged renewed adjustable-rate mortgage demand as rising fixed rates pushed the ARM share above 11% of rate locks. Its Conforming 30-year Fixed Rate Index reached 7.2% on Sept. 24, lifting borrower interest in lower initial ARM payments.
2. Reset figures
Active first-lien ARMs rose to 3.1 million, their highest level in 5.5 years, but remained 5.6% of active mortgages. Only 1.05 million ARMs have reached their first reset, the lowest number in more than 25 years. About 74,000 seven-year ARMs from 2020 are set to reset in 2027, with a median payment increase of $1,066.
