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Why are US rates rising?

The US central bank, the Federal Reserve, has been increasing its main interest rate to try and control inflation. When the Fed raises its rate, it makes borrowing more expensive across the economy, including for mortgages. This pushes up the rates for fixed mortgages, making ARMs with their lower initial rates more attractive to some buyers looking for cheaper options.

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Demand for riskier adjustable mortgages in US hits highest since June

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