From New York Post · · 1m
Pandemic Homeowners Face $1000 Mortgage Hike
Pandemic-era homeowners could see monthly mortgage payments jump over $1,000 as adjustable rates reset next year.
In brief
Pandemic-era homeowners could see monthly mortgage payments jump over $1,000 as adjustable rates reset next year. Homeowners with pandemic-era adjustable-rate mortgages may face monthly payment increases exceeding $1,000 when rates reset in 2027. Originally reported by New York Post.
Homebuyers Turn to ARMs
American homebuyers are increasingly turning to adjustable-rate mortgages as borrowing costs surge.
ARMs Share Hits 11%
Nearly 11% of mortgage rate locks were for adjustable-rate mortgages in mid-September, the highest share in nearly four years.
Rates Climb Above 7%
Conventional mortgage rates have risen to 7.31%, their highest level since November 2023.
2027 Reset Risk
About 186,000 homeowners are expected to see their ARMs reset for the first time in 2027, up from 148,000 this year.
Payment Hike Impact
The median borrower could see their interest rate jump 2.2 percentage points, adding $645 to monthly payments.
Pandemic Borrowers Hit Hard
Those who took out seven-year ARMs in 2020 could face a $1,000+ monthly payment increase when rates reset in 2027.
The big picture
Homeowners with pandemic-era adjustable-rate mortgages may face monthly payment increases exceeding $1,000 when rates reset in 2027.
