Tag Archives: fixed rate mortgages

ARMs to Benefit from Loose Monetary Policy

Headlines are telling us the economic impact of single family housing is subdued because first time home buyers are scarce. Perhaps the pool of single professionals, newlyweds and young families is too focused on fixed rate mortgages. Adjustable rate mortgage products knows as ARMs may be discounted by their baby boomer parents as too risky. But today’s move by the European Central Bank (ECB) to cut rates by -0.10 may indicate that stateside interest rates may not increase for the foreseeable future. The deflation risk affecting central bank policy around the developed world should make an ARM a good choice for first time buyers with plans to move up in coming years.
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