Why More Homebuyers Are Turning to the Mortgage Option Linked to the 2008 Housing Crisis

Key Takeaways ARM applications reached 12.9% of total mortgage applications in September—the highest since 2008—though the share has since declined to around 6%-8% as fixed rates have eased. Adjustable-rate mortgages contributed significantly to the 2008 housing crisis, as many borrowers with poor credit struggled to make payments when their rates increased. High mortgage rates have been overwhelming homebuyers for the past three years, and some are turning to a mortgage option that helped fuel the ...