Adjustable Rate Mortgage Forecast

Market Commentary 8758
December, 2011 Data:

12 MONTH FORECAST
The 12 month forecast for the Adjustable Rate Mortgage Rate is in the table at
the top of this page. Forecast-Chart.com is forecasting that Adjustable Rate
Mortgage Rates will be roughly 2.82% in one year. The table shows a HDTFA of
0.61% which suggests that the January, 2013 rate could easily fall between
3.43% and 2.21%. Links to Forecasts for many other interest rates may be
found on the left side of this page.

HISTORICAL ADJUSTABLE RATE MORTGAGE RATE
Average (Last 12 Months)        3.04%.
Average (Last 10 Years)          4.46%
High (Last 12 Months)             3.35% (February, 2011)
Low (Last 12 Months)              2.79% (December, 2011)
High (Since January, 1984)    12.20% (July, 1984)
Low (Since January, 1984)      2.79% (December, 2011)

MONTHLY ADJUSTABLE RATE MORTGAGE RATE
Jan, 2011     3.3%
Feb, 2011     3.4%
Mar, 2011     3.2%
Apr, 2011     3.2%
May, 2011     3.1%
Jun, 2011     3.0%
Jul,   2011     3.0%
Aug, 2011     2.9%
Sep, 2011     2.8%
Oct, 2011     2.9%
Nov, 2011     2.9%
Dec, 2011     2.8%

HIGHLIGHTS
The Adjustable Rate Mortgage Rate for December, 2011 averaged 2.79%.
That's 11 basis points lower than the November, 2011 rate of 2.9%, and 52
basis points lower than the December, 2010 rate of 3.31%. The fall in rates
from November to December indicates that the short term rate trend has been
down. If that market trend continues, we should see an average daily rate in
January, 2012 that is close to 2.68%.

The average Adjustable Rate Mortgage Rate for the last 12 months was
3.04%. The average rate over the last 10 years was 4.46%. Lower rates over
the last 12 months compared to the average rates over the last 10 years serve
as an indicator that the long term rate trend in Adjustable Rate Mortgage Rates
is down.

The highest annual rate over the last 12 months was 3.35%. The lowest was
2.79%. The high annual rate was attained in February, 2011. The market low
was achieved in December, 2011.

Forecast-Chart.com's historical research covers Adjustable Rate Mortgage
Rate data back to January, 1984. The average annual rate during that period
of history was 6.14%. The highest rate was 12.20%. The lowest rate was
2.79%. The market high was attained in July of 1984. The market low was
achieved in December of 2011. Recent rates experienced in December of 2011
are low relative to the historical 6.14% average.

This page provides a five year chart and a forecast for Adjustable Rate
Mortgage Rates. For links to longer term charts, look at the links under the five
year chart (above). One link opens a ten year chart. Another opens our longest
term graph on Adjustable Rate Mortgage Rates. Just one glance at our long
term charts can provide tremendous insight into the historical trends of the
financial markets. The data table above presents the history of the Adjustable
Rate Mortgage Rate in numerical format.

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Average daily rate per month for conventional, conforming, treasury-Indexed 1year adjustable
mortgage rates are shown in gray. Source: Freddie Mac. The forecast for the target month is shown
in green.

Adjustable Mortgage Rate - 5 Year History