Until recent weeks, mortgage interest rates had been on a steady downward trend, with 30-year rates falling to 7.37% at the end of July (their lowest level since March 1996). Combined with the relatively small spread between fixed and adjustable rate mortgages, these consumer friendly rates have kept the share of new mortgages with adjustable rates at relatively low levels (25% in June).
Suggested citation: “Housing Finance,” Federal Reserve Bank of Cleveland, Economic Trends, no. 97-09, pp. 16, 09.01.1997.