Fixed rate mortgages gain ground in Seattle-Tacoma metro area.

RIVERSIDE, Calif--(BUSINESS WIRE)--May 19, 1995--Fixed rate mortgages have gained market share in the Seattle-Tacoma metropolitan area as the gap between fixed rate and adjustable rate mortgages has narrowed.

Figures compiled from recorded deeds by TRW REDI Property Data, a nationwide real estate information company, show that of the 6,700 mortgages originated in February in the three-county region of King, Snohomish and Pierce, 78 percent were fixed rate. That was up from 68 percent in November of last year. In February, the average rate for a 30-year fixed mortgage was 8.77 percent - 2.13 percent above the one-year adjustable rate loan.

TRW REDI's figures show that in 1993 more than 88 percent of mortgages advanced by banks, thrifts and mortgage companies in the Seattle-Tacoma metro region were fixed rate. As the gap between long term and short term rates increased during 1994, consumers flocked to the variable rate loans boosting its market share from 12 percent in 1993 to more than 23 percent by the end of 1994. The average rate for a one-year adjustable mortgage stood at 5.34 percent in 1994 compared to 8.36 percent for a 30 year fixed rate loan.

In a recent study of lending activity in other parts of the country, TRW REDI found that adjustable rate mortgages are most popular in California where they account for almost half of all mortgages. -0-

                    Seattle-Tacoma Metro Area:
          Number of Fixed and Adjustable Rate Mortgages

Originated
Year    Month            Fixed            Arm        Total

1993    1                8,200           1,600        9,800
        2                8,100           1,300        9,400
        3               13,100           1,700       14,800
        4               17,400           1,800       19,200
        5               17,700           2,000       19,700
        6               19,200           2,400       21,600
        7               15,700           2,200       17,900
        8               17,000           2,200       19,200
        9               16,500           2,300       18,800
        10              18,500           2,200       20,700
        11              19,000           2,200       21,200
        12              18,200           2,800       21,000
1994    1               13,500           2,300       15,800
        2               11,900           2,000       13,900
        3               13,200           2,800       16,000
        4               10,600           3,100       13,700
        5                8,800           3,200       12,000
        6                6,900           2,700        9,600
        7                6,400           2,300        8,700
        8                7,300           2,400        9,700
        9                6,200           2,400        8,600
        10               5,800           2,600        8,400
        11               5,400           2,500        7,900
        12               6,000           2,600        8,600
1995    1                4,600           1,700        6,300
        2                5,200           1,500        6,700

-0-

For more information contact Nima Nattagh (Market analyst) at 909/276-3629.

CONTACT: TRW REDI, Riverside

Nima Nattagh, Market Analyst, 909/276-3629