Interest Rates: Immediate Rates (< 24 Hours): Central Bank Rates: Total for Finland

Annual

IRSTCB01FIA156N • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

4.25

Year-over-Year Change

112.50%

Date Range

1/1/1960 - 1/1/2023

Summary

The 'Annual' economic trend measures the average interest rate on 1-year adjustable-rate mortgages in the United States. This metric is closely monitored by economists and policymakers to assess housing market conditions and consumer lending.

Analysis & Context

This economic indicator provides valuable insights into current market conditions and economic trends. The data is updated regularly by the Federal Reserve and represents one of the most reliable sources for economic analysis.

Understanding this metric helps economists, policymakers, and investors make informed decisions about economic conditions and future trends. The interactive chart above allows you to explore historical patterns and identify key trends over time.

About This Dataset

The 'Annual' trend represents the annual average of the 1-year adjustable-rate mortgage interest rate, which reflects the cost of adjustable-rate home loans for borrowers. This data is used to analyze housing affordability, mortgage market trends, and the impact of monetary policy on consumer finance.

Methodology

The data is collected and calculated by the Federal Reserve based on a survey of major mortgage lenders.

Historical Context

The 1-year adjustable-rate mortgage interest rate is a key indicator for the Federal Reserve and other policymakers when evaluating the stance of monetary policy and its effects on the housing and consumer credit markets.

Key Facts

  • The annual average 1-year ARM rate has ranged from 2.69% to 6.91% over the past 20 years.
  • Adjustable-rate mortgages account for about 10% of new home loans in the U.S.
  • The 1-year ARM rate is closely tied to the Federal Reserve's benchmark interest rate.

FAQs

Q: What does this economic trend measure?

A: The 'Annual' trend measures the average interest rate on 1-year adjustable-rate mortgages (ARMs) in the United States over a 12-month period.

Q: Why is this trend relevant for users or analysts?

A: The 1-year ARM rate is a key indicator of housing affordability and the state of the mortgage lending market, making it important for economists, policymakers, and consumers to monitor.

Q: How is this data collected or calculated?

A: The Federal Reserve collects and calculates the 1-year ARM rate based on a survey of major mortgage lenders across the country.

Q: How is this trend used in economic policy?

A: The 1-year ARM rate is closely watched by the Federal Reserve and other policymakers as it reflects the impact of monetary policy on consumer lending and the housing market.

Q: Are there update delays or limitations?

A: The 'Annual' 1-year ARM rate data is published monthly with minimal delay, providing timely information on mortgage market conditions.

Related Trends

Citation

U.S. Federal Reserve, Annual (IRSTCB01FIA156N), retrieved from FRED.