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WASHINGTON — Home buyers feeling financially squeezed by higher interest rates are increasingly being steered by real estate agents and mortgage brokers to potentially riskier types of mortgages, similar to those seen ahead of the 2008 financial crisis, causing concern among some consumer advocates and industry analysts.  Among the loans being promoted to home buyers are adjustable rate mortgages, so-called 2-1 buydowns, which artificially lower rates for the first two years, and interest-only mortgages in which borrowers pay a lower monthly payment for several years by only paying the loan interest, according to interviews with real estate professionals, industry data and a review of marketing material from real estate agents and mortgage brokers.  In all instances, borrowers can find themselves with monthly payments that increase by hundreds of dollars a month after the introductory period, a dynamic seen in the run-up to the last housing market crash when predatory lending resulted...

Mortgage demand dropped again last week as rates climbed higher, but adjustable-rate mortgages, or ARMs, which offer lower rates , are seeing renewed demand after getting very little interest over the last decade. Total mortgage application volume dropped 2% last week compared with the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index, a consequence of surging rates. The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($647,200 or less) increased to 6.81% from 6.75%, with points increasing to 0.97 from 0.95 (including the origination fee) for loans with a 20% down payment. That is the highest rate since 2006. How to navigate the housing market roller coaster and ease stress Oct. 7, 2022 03:02 “The news that job growth and wage growth continued in September is positive for the housing market, as higher incomes support housing demand. However, it also pushed off the possibility of any near-term pivot f...