Adjustable Rate Mortgages Making a Comeback

Washington, DC, Feb. 14, 2011 -- Adjustable rate mortgages are making a comeback of sorts.

After accounting for nearly 70% of all mortgages issued during the boom, ARMs totaled 3% of the market in 2009. Now they make up 5% of all mortgages issued, and Freddie Mac predicts 10% by December.

Rates are a major factor. The most common ARM loan currently has a rate of 3.5% compared to 5% for a 30-year fixed-rate mortgage.