When Adjustable Rates Stop Making Sense

Send us a text to chat now! The mortgage market just did something that should grab every homeowner by the collar: the 5/1 adjustable-rate mortgage climbed above 7% while the 30-year fixed sits lower. That’s not a quirky headline. It’s a pricing message from lenders that says, “We don’t know where rates are going, and we’re not discounting uncertainty.” When an adjustable-rate mortgage costs more than a fixed-rate mortgage, you’re paying extra for the privilege of taking on reset risk, and th...