Demand for riskier mortgages drops, as their advantages shrink

According to CNBC, demand for adjustable rate mortgages is slipping as their competitive edge disappears. The interest rate spread between fixed and ARM mortgages is narrowing, which means borrowers have less reason to take on the added risk of variable rates. As the advantages shrink, more homebuyers are sticking with traditional fixed mortgages.

Listen to this story

Hear this and more stories in a personalized audio briefing.

Open The Chonkerton