Business

Rising Mortgage Rates Spark Riskier Loan Demand

Updated 2026-05-20 11:20 UTC 2 sources Negative

Increasing mortgage rates are driving a surge in demand for riskier adjustable-rate loans, which offer lower initial costs but come with higher risks. This trend reflects the financial challenges faced by many homebuyers.

Coverage timeline — 2 articles

CNBC

Rising mortgage rates cause surge in demand for riskier loans

Mortgage rates continued to rise last week, causing more borrowers to head to adjustable-rate loans, which are cheaper but considered riskier.

2026-05-20 11:00 UTC

MarketWatch

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2026-05-20 11:01 UTC