The increase in ARMs is directly correlated to the rising 30-year rate.

The percentage of borrowers that purchased adjustable-rate loans reached 8.9 percent, the highest it’s been since Ellie Mae began tracking data in 2011. The increase in ARMs is directly correlated to the 30-year rate, which rose to 5.15 in November, up from 5.01 the month prior, according to the November Origination Insight Report from Ellie Mae. For FHAs, the 30-year rate increased from 5.05 in October to 5.19 in November. Conventional rates increased from 5.03 in October to 5.17 in November, and VA rates rose from 4.83 to 4.99. “As interest rates continue to rise, we are seeing the percentage of adjustable-rates rise in lockstep, and this month they’ve risen to the highest percentage we’ve seen since we began tracking data,” said Jonathan Corr, president and CEO of Ellie Mae. “As expected, we are also continuing to see the percentage of refinances remain low—30 percent in November—due to higher interest rates.” Source: Mortgage Professional America