High mortgage rates have been overwhelming homebuyers for the past three years, and some are turning to a mortgage option that helped fuel the 2008 housing crisis.
Adjustable-rate mortgages (ARMs) offer fixed introductory rates that later adjust—typically to a higher rate—to reflect current market conditions. These loans have become more popular with homebuyers as mortgage rates remain persistently above 6%.
While those homeowners risk higher monthly mortgage payments should rates hike, housing industry officials said better lending standards are minimizing the risks of these loans.
Why More Homebuyers Are Choosing the Mortgage Tied to the 2008 Housing Crisis
