One-Year ARM Rates Stink

I haven't really been paying attention to ARM rates lately, because, well, I just assumed that we are living in a fixed-rate world. But the Mortgage Bankers Association released its new weekly application index with this one startling finding: the average contract rate on a one-year ARM is 7.15%, which means no person in their right mind would take out of these loans (but of course) but it also means that anyone who has a one-year ARM is likely looking to refi ASAP. Of course, with mortgage credit extremely tight (especially for jumbo borrowers) finding a willing lender is no longer so easy…