Mortgage Rates Hit 23-Year High But Start to Drop as Buyers Turn to Risky ARMs

Mortgage rates reached over 8% in October but have started falling back to around 7%, which is still the highest since 2000.
With fixed rates so high, more buyers are turning to adjustable-rate mortgages which carry risks of volatile rates.
Factors like inflation and the Federal Reserve's interest rate hikes have driven rates up over the past year.
Housing inventory is low while prices remain high, worsening affordability issues for buyers.
Experts think rates may continue to ease in 2023 but likely remain above 6% for the near future.