US Mortgage Rates Jump To 4.2%, Spread Between Fixed-rate Mortgages And 5/1 Adjustable-rate Mortgages Now 133 Basis Points (Broken ARMs??)

The US 30-year mortgage rate broke through the 4% barrier. According to Bankrate’s mortgage survey, the 30-year mortgage rate is now 4.2%.

Even more interesting is the 5/1 Adjustable Rate Mortgage (ARM) rate falling slightly to 2.87%. That is quite a spread between the 30-year fixed and 5/1 ARM rates! That is 133 basis points.

Broken ARMs??