Adjustable rate mortgages are making a comeback and in the last week of June, the dollar value of ARM applications accounted for 16% of mortgage requests, an article in Bloomberg reported.
“We’ve seen a shift in the way people look at adjustable-rate mortgages,” says Cameron Findlay, chief economist of Discover Financial Services’ home-loan unit. “They’re still skeptical about using ARMs, given the role they played in the financial crisis, but the sticker shock of what fixed rates have done is making them look for alternatives.”
