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Mortgage Contract Design:
Implications for Households,
Monetary Policy and Financial Stability
Opening Remarks by James McAndrews
May 21, 2015

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Percent

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10-year Treasury (CMT)

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Fed Funds Rate

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Chart 1: Market interest rates and average mortgage rates

Outstanding Mortgages

Rates on outstanding loans based on data from Black Knight Financial Services.
Outstanding loans are balance-weighted and do not include 60-days or more delinquent loans.

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Chart 2: Average interest rates on the stock of mortgages:
FRMs vs ARMs
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Outstanding FRMs

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Outstanding ARMs

Percent

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5

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3
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1
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n0
9
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n0
8

3
n0
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3
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4

n0
5

4

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Percent

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Rates on outstanding loans based on data from Black Knight Financial Services.
Outstanding loans are balance-weighted and do not include 60-days or more delinquent loans.

3