Homebuyers are entering into riskier loans with the hope mortgage rates are going to eventually fall

Around 10% of purchase-mortgage applications submitted during the week ending October 3, 2025, were for adjustable-rate mortgages (ARMs) — the highest level since 2023, according to Mortgage Bankers Association (MBA) data reported on by The Wall Street Journal (1). More recently, the association said that last month ARM loans accounted for 25%...