WASHINGTON -- The Federal Housing Finance Board said 31% of conventional mortgage loans closed in April had adjustable interest rates, up sharply from a 23% share in March.
The April figure was the highest since November 1990, the board said. It noted that the recent low in average fixed rates was 6.87% in October. At the time, the fixed rate was 1.52 percentage point greater than for adjustable-rate loans. But the rate differential widened to 1.82 percentage point in April.