Less affordable housing is pushing potential buyers toward buying alternatives such as adjustable-rate mortgages, according to a local economist.
More homebuyers are opting to get into adjustable-rate mortgages — where rates are typically lower in the first three or five years of the loan. Then, rates can fluctuate from month to month after that time period is up, said Danny Court, a Phoenix-area economist.
Adjustable-rate mortgages differ from a 30-year fixed-rate mortgage where the rate stays the same for the life of the loan.
