Here We Go Again

With rising interest rates, and rising house prices, potential buyers are heading back to more exotic and risky mortgage products.

We're partying like it's 2008: 

Mortgage demand overall weakened again last week, even as interest rates fell slightly. For those still in the market, though, they are looking increasingly to adjustable-rate loans to get the lowest interest rate possible.

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For those who are buying or refinancing, somewhat riskier adjustable-rate mortgages are gaining in popularity, as they offer lower interest rates. Rate terms on ARMs can be fixed for up to 10 years, but the loans are considered riskier, as they can adjust higher depending on market conditions when the fixed term expires. 

It appears that we have learned nothing in the past 17 years.