Adjustable-rate mortgages are again gaining in popularity despite practically vanishing during the housing bust. Since home prices and interest rates rose last year, more people have turned to adjustable mortgages to keep their monthly payments affordable, with such mortgages offering a lower initial rate. However, careful! - the rate can rise over time with market changes.
Read the article from the LA times by Andrew Khouri.
Also, Households saved just 4.2 percent of the after-tax income in November. The
average was close to 6 percent from 2009 until 2011. Wealth gains from existing
assets, such as rising home values, may explain why households are saving
less, according to this blog from the Wall Street Journal.
Are we back to what I call "aggressive financial living"? Hum, a trend to keep an eye on...
Thanks for reading!
Silicon Valley real estate specialist
Detailed, local trends etc...
Current mortgage rates
non-profit organization worth noting: Partners for New Generations.