Adjustable-Rate Mortgages Stage Comeback as Housing Affordability Worsens
Nearly one in ten September homebuyers opted for adjustable-rate mortgages, resurrecting the financing instrument that amplified the 2008 housing crash. Unlike the subprime crisis era, today's borrowers face stricter underwriting—yet persistent 6%+ mortgage rates make these ticking time bombs appealing.
Lenders insist lessons were learned. "Current ARM borrowers face minimal risk," claims Nation One Mortgage's Phil Crescenzo Jr., ignoring parallels to pre-crisis rationalizations. The products offer temporary rate relief before inevitable adjustments upward.
This resurgence signals deeper economic stress. When even middle-class buyers gamble on volatile loans to secure housing, it reveals systemic affordability failures. The market watches nervously—will tighter standards prevent history repeating, or merely delay the reckoning?
