Adjustable Rate Loans (ARM) Becoming Unpopular

According to the most recent report from Freddie Mac, 95% of refinanced mortgage loans are fixed-rate products. Adjustable rate mortgages appear to have become wildly unpopular.

Frank Nothaft, chief economist for Freddie Mac attributes the shift to two factors: ultra-low fixed interest rates and a desire for predictability of monthly payments (peace of mind). As of the end of last week, the average rate for a 30-year fixed-rate mortgage was a mere 4.97 percent.

Although two-thirds of loan applications are currently refinance loans, not new loans, the National Association of Realtors claims that the low fixed rates are primarily responsible for the recent improvement in sales of existing homes.

Ford Posts A Profit for First Time Since 2005

In comparison to the other American car companies, Ford has been doing well this past year. While GM and Chrysler have experienced declining revenue, Ford has enjoyed increased sales.

The cherry on the top of this automotive parfait is Ford's announcement today that they have posted their first annual profit since 2005. This profit represents a whopping earnings per share of 43 cents, handily exceeding analyst estimates of 26 cents. And all this without taking bailout money...

Clearly, Ford is doing something right.