Rising interest rates have led to an increase in the share of mortgages originated with an adjustable rate (ARMs). But the market share is still small, and the products have not been targeted at riskier borrowers. Moreover, with nearly all ARMs having an initial fixed-rate period of five years and interest rates likely to be cut in 2020, the chance of borrowers facing a payment shock when their rate resets is low.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services