It has been a while since adjustable-rate mortgages (ARMs) were topical. Adjustable-rate mortgages have been a sleepy market ever since the Fed went to zero eight years ago, at about the same time that extensive ARM abuse in the bubble stopped. And their basic structures are far older than the experience of most borrowers today.
- Since the ARM's invention, there has been no period of sustained, steep increase in short-term rates. We won't get away with that forever.