Top Ten U.S. Areas by Share of Adjustable-Rate Mortgages

Some “top ten” data on the share of adjustable-rate mortgages in different U.S. jurisdictions. Scary stuff.

1. Nevada, 43%
2. California, 40%
3. District of Columbia, 35%
4. Arizona, 33%
5. Florida, 33%
6. Colorado, 33%
7. Illinois, 28%
8. Washington, 27%
9. Maryland, 26%
10. Virginia, 26%
Source: Mortgage Bankers Association


  1. Why are ARMs so “scary”?
    Haven’t they decreased the cost of home ownership? Since most have lock-ins of 3 – 5 years, they aren’t catastrophic choices, even if rates go up. In the current non-volatile interest rate environment, ARMs don’t seem so bad?
    I’m surprised the numbers aren’t higher.
    If the chart was “interest-only” – that may be scary…

  2. They are only scary if rates go up. A single point rise won’t cause massive foreclosures but it will put a large dent into disposable household income meaning that consumer spending is leveraged to interest rates more than ever before.
    The tripwire is more taut than we thought, that’s scary.