With more borrowers moving into hybrid adjustable rate mortgages (ARMs), the market is wondering how the trend will impact the widely expected spike in refinancings. Some analysts have suggested that the so-called ARM effect will cause more refinancing risk in 30-year paper versus 15-year product while others say it will increase base speeds across coupons.

According to Street research, the ARM share in the Mortgage Bankers Association (MBA) Refinancing Index has risen steadily over the past several months.

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.