Industry News

Survey: 14% of homeowners hold adjustable-rate mortgages

Most plan to refinance when interest rate resets

One in seven homeowners have adjustable-rate mortgages, and 79 percent are concerned about the interest rate on their mortgage increasing, according to a survey of 1,361 homeowners who closely mirror the U.S. population. The survey, conducted in August for Wells Fargo, found that 56 percent of those holding ARMs plan to refinance when their interest rate resets, while 21 percent plan to take no action. The young and those with higher incomes were the most likely to hold an ARM, the survey found. Among 18- to 29-year-old homeowners, 27 percent had an ARM, compared with 19 percent of 30- to 41-year-olds. Among homeowners with annual incomes of $75,000 and up, 19 percent had ARMs, compared with 14 percent for the survey as a whole. About 17 percent of those with homes worth $200,000 or more held an adjustable-rate mortgage. Nine out of 10 homeowners said they expect the value of their homes to stay the same or increase in the next 12 months, an indication that they aren't as pessimis...