Mortgage Rates Mixed: The effective rate for...

Mortgage Rates Mixed: The effective rate for commitments on fixed-rate mortgages, or FRMs, decreased for the first time in two months by 10 basis points, to 11.11%, in early February, while adjustable-rate mortgages, or ARMs, increased by three basis points to 9.59%, the Federal Home Loan Bank Board reported. “The change is explained by the fact that rates on longer-term securities, which are competitive with fixed-rate mortgages, declined from early January to early February, while short-term rates, to which ARMs are linked, generally increased. These rate changes preceded the increase in the Federal Reserve discount rate on Feb. 24,” said James Barth, chief economist for the bank board.