Nearly one in ten borrowers turns to riskier adjustable-rate mortgages as rates top 7%

Almost ten per cent of borrowers opted for adjustable-rate mortgages last week as fixed mortgage rates climbed above seven per cent, marking a notable shift in how Americans are approaching home financing in a high-cost environment.

Adjustable-rate mortgages, which carry lower initial interest rates than their fixed-rate counterparts, have historically been considered riskier because repayments can rise sharply if broader interest rates increase further. Despite that risk, the short-term savings are proving attractive to borrowers squeezed by elevated borrowing costs.

The trend underlines the strain that persistently high mortgage rates are placing on the housing market, pushing buyers toward financial products that offer immediate relief even at the cost of longer-term uncertainty.