Adjustable-rate mortgages (ARM’s) are flat or higher than the traditional 30-year fixed mortgage, something that rarely happens. This rare occurrence can be attributed to the much talked about – and feared - inverted yield curve*.
“Long term rates are now equal to or lower than one-year rates. It’s a bad time to get an ARM” said Guy Celcala, publisher and CEO of Inside Mortgage Finance.
*Inverted Yield Curve: when long term interest rates are below short-term interest rates. This typically happens prior to a recession.