‘Not Gonna Be Pretty:’ Covid-Era Homebuyers Face Huge Rate Jump
- Adjustable-rate mortgages are due to reset for many borrowers
- Some 70% of holders are worried about payments, survey finds
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A small but mostly affluent group of Americans are about to see their mortgage payments skyrocket.
They are the more than 1.7 million owners of homes bought since 2019 with an adjustable-rate mortgage. These loans — averaging about $1 million to finance more expensive properties — are set at a rate lower than the prevailing 30-year for the first few years, then adjust once or twice a year based on current borrowing costs.