Adjustable Rate Mortgage Demand Jumps 10% as Homebuyers Struggle to Afford Houses

[bjl584]

Adjustable-rate mortgage demand jumps nearly 10% as buyers struggle to afford today's pricey housing market (cnbc.com)

[disneysteve]

ARMs are generally considered more risky, but in an environment where we're probably at or near the end of a rate-raising cycle, maybe not so risky. It's highly likely that 5 years from now, rates will be lower than they are today. Taking advantage of the lower rate now to get into the home will probably turn out to be a wise decision down the line. When rates drift down, the opportunity to refi will present itself and those folks will be able to lock in a fixed rate that is much better than today.

[LivingAlmostLarge]

You know in canada they never have more than a 5 year fixed rate period. So other countries use that as the standard. After five years they are expected to renegotiate the rate. So that being said they just either move or in canada get approved for less house.

https://www.thestar.com/business/per...d%2025%20years.

They aren't allowed to carry a mortgage more than 25 years.