ARM holders move to low fixed ratesHomeowners with...


November 19, 1995

ARM holders move to low fixed rates

Homeowners with adjustable-rate mortgages (ARMs) are taking advantage of low interest rates to refinance with fixed-rate loans, according to a Freddie Mac study.

According to the survey, just 11 percent of refinancing borrowers with ARMs applied for new adjustable-rate mortgages in the third quarter, the lowest rate since the end of 1991. The rate was 22 percent in the second quarter and 29 percent in the first quarter.

A year ago, 30-year fixed-rate mortgages averaged 9.19 percent nationally in Freddie Mac's Primary Mortgage Market Survey. This week, the rate is down to 7.35 percent.

The rate for 1-year, Treasury-indexed ARMs is 5.65 percent this week.

Freddie Mac, the Federal Home Loan Mortgage Corp., is a stockholder-owned corporation established by Congress in 1970 to purchase mortgages from lenders and resell them as securities to investors.

Realtor political giving topped $3 million

Realtors made campaign contributions of more than $3.1 million through their political action committee in the 1993-1994 election cycle, according to the National Association of Realtors.

Around 70 percent of the funds remained in the states to support state and local candidates, with the balance contributed to candidates for Congress.

The Realtors Political Action Committee received contributions from about 145,000 Realtors a year during the period.

The NAR represents nearly 750,000 members from all phases of the real estate industry.

NAR officials testified last week against public financing of congressional races, arguing in hearings before a House committee that such legislation would deprive voters of the right to contribute to the candidates of their choice.

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