Adjustable-rate mortgage lending fell sharply last year as the initial payment savings disappeared, according to a survey by Freddie Mac.

"Our survey found that starting rates for conforming one-year ARMs averaged 1.76 percentage points above their fully-indexed rate, the largest rate premium observed since Freddie Mac began collecting ARM data in 1984," said Frank Nothaft, chief economist at the firm.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.