The trend: Persistently high mortgage rates have forced many US consumers—especially younger, first-time homebuyers—to postpone their dream of owning a home. But adjustable-rate mortgages (ARMs) are making a comeback: Their share of all US mortgages has nearly doubled since 2017, reaching 30% in 2025. This could drive a boost in mortgage sales among these hopeful owners, per Curinos.

The rationale: With 30-year mortgage rates nearing 7% and 15-year rates nearing 6%, per The Mortgage Reports, purchasing a home can be intimidating and unaffordable. But ARMs enable borrowers to enter the housing market without being locked into the current elevated rates for decades. And their introductory rate is generally lower than that of a 30-year mortgage, with current ARMs averaging just over 6%.

So why isn’t everyone using ARMs? The primary drawback of an ARM is the uncertainty about future interest rates. During the 2008 financial crisis, many consumers ended up with rates they couldn’t afford and lost their homes. But lending standards have since tightened significantly, and approval requirements have gotten more stringent, per Business Insider.