BriefTea
Every story in sixty words
Explained in plain English
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.
Stories that explain this
Demand for riskier adjustable mortgages in US hits highest since JuneRelated explainers
What is the 'Fed's rate'? Are ARMs riskier for me? What's an adjustable mortgage? Could this affect UK mortgages? Why are arrests rising? What are average death rates? Why does the Bank of England raise rates? Why do bills keep rising?The full catalogue
Browse every card filed under U →We would like to count visits and see which links bring readers here. That means storing a random ID in your browser. No cookies, no ads, no profile. How it works.