Although mortgage rates peaked at 8% in late 2023, they remain relatively elevated at about 6.5%. But some members of the younger generations continue to bank on mortgage rates dropping in the near future, even as real estate experts have warned that hope is “unrealistic.”
In fact, a new survey of 1,000 Americans by San Francisco-based mortgage tech provider Truework shows a whopping two-thirds of recent younger homebuyers are gambling their financial futures away on hopes for a major mortgage-rate drop in the next three years. They’re taking on adjusted-rate mortgages (ARMs) at a lower rate or plan to refinance in the future. ARMs typically start with a lower initial monthly payment, but the rate adjusts periodically based on a market index, plus a margin.
“These temporarily lower rates drove them to buy homes that they would otherwise struggle to afford on a…
