Homebuyers give another look at risky variable rate loans | New

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Once notorious, adjustable rate mortgages have recently made a comeback as homebuyers struggling with rising interest rates take on greater financial risk in return for lower payments, a reminder to some of the lending excesses that contributed to the real estate crisis of 2006-07.

ARMs, as home loan products are known, accounted for 7% of all mortgage applications in the United States in the week ended August 12, more than double the rate in January, but down from to the peak of 9.5% a month and a half ago.

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