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

Almost one in ten borrowers opted for adjustable-rate mortgages last week as fixed mortgage rates climbed above 7%, figures show, marking a notable retreat from the safer, fixed-rate products that have long dominated the market.

Adjustable-rate mortgages, which carry lower initial interest rates but expose borrowers to future rate fluctuations, are attracting buyers who would otherwise be priced out of the housing market entirely. The products were widely blamed for contributing to the financial crisis of the late 2000s.

The trend underlines the strain that elevated borrowing costs are placing on households. With fixed rates at current levels, many buyers appear willing to accept greater long-term uncertainty in exchange for more manageable near-term monthly payments.