Americans Turn to Riskier Mortgages as Borrowing Costs Explode

Americans Turn to Riskier Mortgages as Borrowing Costs Explode

Americans are increasingly turning to adjustable-rate mortgages to escape borrowing costs above 7%, reviving a type of home loan that played a prominent role in the housing collapse preceding the 2007-2009 financial crisis.

Americans Turn To Riskier Mortgages As Borrowing Costs Explode. Sound Familiar?

Americans with HELOCs and adjustable-rate mortgages face higher borrowing costs as the Fed raises rates and fixed mortgages top 7%.

Americans turn to riskier mortgages as borrowing costs explode. Sound familiar? - The Daily Bo Snerdley

Americans are increasingly turning to adjustable-rate mortgages to escape borrowing costs above 7%, reviving a type of home loan that played a prominent role in the housing collapse preceding the 2007-2009 financial crisis. Adjustable-rate mortgages, or ARMs, accounted for 9.8% of mortgage applications during the week ending Sept. 18 as the average 30-year fixed mortgage rate surged to 7.12%, its highest level since May 2024, according to the Mo…