Capitol Report: A farewell to ARMs? Americans still shun adjustable-rate mortgages 10 years after the crisis

As the financial crisis gathered steam, Americans fled adjustable-rate mortgages. The share of all mortgage applications with floating rates sank below 1% in late 2008. A decade later, their share still remains low: 6% in early June, according to the Mortgage Bankers Association, versus an average of about 20% in the ten years before 2008.

That makes sense. With fixed-rate mortgages stuck near all-time lows, there’s been little reason for any borrower to take on interest-rate risk with an adjustable-rate loan. (The chart above plots the adjustable-rate share of all mortgages in blue, and shows the 30-year-fixed-rate mortgage rate in red.

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