One-Year ARMs Fall to Historical Low

The rates for one-year ARMs fell today to 2.78% this week, which sets a new record all-time low for the series going back to 1986.  To purchase the median priced existing home at $162,500 in October with a 20% down payment and a one-year ARM at 2.78%, the monthly payments for the first year would be only $532.78 for principal and interest on a before-tax basis, and less than $400 per month after taxes.