Coming off a year of unprecedented growth in the adjustable-rate mortgage market, Wall Street analysts expect continuing strong investor appetite for the product. While agency ARM MBS issuance may drop slightly this year, experts expect non-agency ARM volume to edge higher. “Clearly ARMs were more appealing to borrowers in 2004, despite the flatter curve,” observed Peter Grouev, a vice president with Bear Stearns, during the investment bank’s MBS conference last week. “That the flattening of