The Latest Trends in Interest Rates and Borrower Behavior

Rates for 30-year fixed mortgages are higher than they’ve been in many years. And while the majority of loans are still fixed-rate mortgages, adjustable-rate mortgages are becoming more attractive to homebuyers. According to the Mortgage Bankers Association, applications for adjustable-rate loans increased by about 30% between October 2022 and October 2023.

Adjustable-rate mortgages typically offer lower rates than fixed-rate mortgages for a set period—maybe five years—before the loan resets to current market rates. They are not right for everyone but they offer an alternative to higher rates for certain buyers.