Rates are still under 4%, between 3.75% to 3.85% and analysts expect these rates to hold till the end of the year. However, after that, we do not know.
With the slow rise in rates, the market is starting to see a slow come back of the Adjustable Rate Loan. The rate on this loan type is periodically adjusted based on an index to which the loan in tied, such as LIBOR. In the past, this loan typically offered a lower rate at the beginning to intice purchasers. However, that is no longer common due to the already very low rate.
Adjustable Rate Mortgages have been sort of taboo in the past as they were used frequently during the mortgage loan crisis, yet they should not be completely overlooked. This type of mortgage can be ideal for someone who won’t be living in their home long, more than 3-5 years, because that is the typical period when the rate is fixed.