Adjustable-rate mortgages maintained their hold on the market in August, with 43% of all loans in the month carrying adjustable rates.
That's up slightly from the July level, when 41% of loans were ARMS, but the same level as in June, according to figures compiled by the Federal Housing Finance Board.
Sixty percent of all ARMs in August were linked to the yield on one-year Treasury bills, while 17% were linked to the 11th District Cost of Funds Index, or COFI.
COFI loans predominate in the 11th District, which includes California, Arizona, and Nevada. In most other parts of the country, ARMs are linked to Treasury securities.
Of all loans made by thrifts in August, 74% were ARMs. At mortgage companies, 32% of all loans in August were ARMs, and at commercial banks, the share was 46%.
The data confirm a strong shift in homebuyer preference toward adjustable-rate loans, as interest rates have risen this year.
