if the national mortgage interest rates are dropping why is my adjustable rate going up?

Answer 1

Perhaps your rate was an artificially low, below-market rate and the term for that has expired. Your new rate will be higher. It wouldn't matter if the trend for rates in general was downward.
Read the mortgage agreement you signed. It explains how and when rate changes are calculated and adjusted.

Answer 2

Because you were tricked into getting an adjustable rate.

The rate you are accustomed to paying is BELOW market rates and now you are faced with what the real rate should be.

Why is housing in such a mess?

This is why.

People were told "Don't worry, when the rate re-adjusts you can simply re-finance.

What they did not tell people is this. YOU MAY NOT BE ABLE TO RE-FINANCE INTO A FIXED LOAN WHICH IS WHAT YOU SHOULD HAVE GOTTEN IN THE FIRST PLACE.

ADJUSTABLE RATE MORTGAGES ARE A WAY FOR THE BANKS TO SHIFT THE RISK OF HIGHER RATES ONTO THE AMERICAN PEOPLE.

You either did not due you homework, or were lied to with the teaser rate to get you locked into a very bad situation.

Answer 3

Probably because you go in on a teaser rate, and now the loan company is trying to make up the money they lost on you to begin with. Nice huh? Well face facts, nothing in this life is free. I'm sure they told you it would adjust, but because you were so happy to have the rate, or the payment amount, you did'n't even hear what else they would have told you. Most don't. And we wonder why so many people are losing their homes, it's because they didn't listen and probably didn't understand.

Answer 4

I'm not an expert on such things but adjustable means just that. We have a fixed rate and it can't move up or down.

Answer 5

It could be a teaser that expired or it could be based on the LIBOR rate rather than prime. I don't think LIBOR has dropped.