If the current interest environment is low,lenders tend to prefer ________ ; while borrowers tend to prefer ________.

Question

Quizplus · Accepted Answer

In a low interest environment, lenders prefer Adjustable Rate Mortgages (ARM) because they allow the interest rate to adjust upwards if rates increase in the future, protecting their returns. Borrowers, on the other hand, tend to prefer fixed-rate mortgages to lock in the low rates for the duration of their loan.

If the Current Interest Environment Is Low,lenders Tend to Prefer