Are banks under pressure to push adjustable rate mortgages now?

I’m getting a mortgage and the bank’s loan officer is pushing ARMs on me hard. I said they seem like a terrible idea to me, because rates are almost definitely going to increase. She replied that there’s an introductory period where the rate is fixed, it can only increase by a maximum of .5 or 1% a year or something, and the average homeowner refinances within a couple years anyway, so I’d probably never see a rate increase. But I mean…I can easily see a situation where the bank is worried that we’re about to go into a recession and possibly years of very high interest rates that would make it difficult for me to refinance with a better rate any time soon, and make all of these supposed benefits of an ARM irrelevant. It’s not like a decade of 10%+ rates is unprecedented. Anyone else agree and notice this happening?

submitted by /u/nub2aws
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I’m getting a mortgage and the bank’s loan officer is pushing ARMs on me hard. I said they seem like a terrible idea to me, because rates are almost definitely going to increase. She replied that there’s an introductory period where the rate is fixed, it can only increase by a maximum of .5 or 1% a year or something, and the average homeowner refinances within a couple years anyway, so I’d probably never see a rate increase. But I mean…I can easily see a situation where the bank is worried that we’re about to go into a recession and possibly years of very high interest rates that would make it difficult for me to refinance with a better rate any time soon, and make all of these supposed benefits of an ARM irrelevant. It’s not like a decade of 10%+ rates is unprecedented. Anyone else agree and notice this happening? submitted by /u/nub2aws [link] [comments]

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