I’m not sure that others disagree, some (still) just don’t understand.
When you have an ARM that is going to move 300 to 500 bps on the first adjustment, your rate is so obscene anyway.
It’s usually not explained properly, but an ARM shouldn’t be intended as a long term loan. An adjustment during your fixed period isn’t going to happen, and most people should get out of them (if they can) at reset if they are keeping the property.
The indexes are sometimes AVERAGES or lagging so the 50 bps cut isn’t reflected in an index immediately.
The 10YR is UP 8 bps at the moment today.
30 YR fixed conforming loans are 5.875% at PAR today.
Find an index that you like!! Daily updates are available.
If one reads their loan docs, a scary event is when the index that you are tied to no longer exists, and a replacement is used. (FNMA LIBOR no longer exists)
