Adjustable rate mortgages became increasingly attractive and grew as a percentage of total outstanding mortgages during 2002 to 2004 because
A) interest rates were kept artificially low during this period.
B) interest rates rose sharply during this period.
C) lending standards were tightened during this period.
D) housing prices declined during this period.

Question

Quizplus · Accepted Answer

Interest rates were kept artificially low during this period, making adjustable rate mortgages more attractive due to their initially lower rates compared to fixed-rate mortgages.

Adjustable Rate Mortgages Became Increasingly Attractive and Grew as a Percentage