Once again the mortgage rates are shooting up like they did in the early 1980’s. The buying power of potential home owners dropped like a bomb. The solution was to get an adjustable rate mortgage. They were sold as a means to buy a home and not be subjected to the high rates. Consumers were informed to sell the homes if the adjustable rate went up too high for their budget. Far too many consumers took the adjustable rate as an option. So many that people could not even sell their homes what they paid for them. Many simply walked away because of the high monthly rates and because they failed to have much “skin-in-the-game” but having little if any down payment.
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