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Hey Everyone,

Welcome to this week’s edition of The Ridgeline Rundown!

Thinking about an adjustable-rate mortgage (ARM)? With rates and home prices pushing affordability, more buyers are exploring creative financing options—and ARMs are making a comeback. But today’s ARMs aren’t what they were back in 2008. This week, we break down why they're gaining traction, how they work, and whether they could be a smart move for you or a risk not worth taking.

Plus:
🏞️ Local news and upcoming Colorado Springs events
📊 Market insights to help you stay ahead
💈 A spotlight on Intrigue Salon—our featured local business this week
🎯 And tips to make smart financial moves in this market

Let’s dive in and keep you moving forward with clarity and confidence.

As always, I’m here to guide you with honest advice, real strategies, and a personalized approach that makes a difference. Have questions? Let’s chat and build a plan that works for you.

Mortgage Minute

Mortgage rates just hit a 3-month high, driven by concerns over increased government spending. Markets are reacting to the lack of serious spending cuts in the latest bill, as more fiscal spending usually means more Treasury issuance—pushing rates up. Although the House passed the bill, the Senate delay until late summer has markets reassessing. Some investors now see U.S. Treasury yields (4–5%+) as attractive, which could help ease rate pressure if bond buying increases.

Featured Business: Local Spotlight!

The Insider’s Guide to Real Estate | Tips

Thinking about an Adjustable-Rate Mortgage? Read This First.

If you’ve been house hunting lately, you’ve probably felt the sting of today’s mortgage rates. And it’s because of those rates and rising home prices that many homebuyers are starting to explore other types of loans to make the numbers work. And one option that’s gaining popularity? Adjustable-rate mortgages (ARMs).

If you remember the crash in 2008, this may bring up some concerns. But don’t worry. Today’s ARMs aren’t the same. Here’s why.

Back then, some buyers were given loans they couldn’t afford after the rates adjusted. But now, lenders are more cautious, and they evaluate whether you could still afford the loan if your rate increases. So, don’t assume the return of ARMs means another crash. Right now, it just shows some buyers are looking for creative solutions when affordability is tough. 

You can see the recent trend in this data from the Mortgage Bankers Association (MBA). More people are opting for ARMs right now (see graph below):

And while ARMs aren’t right for everyone, in certain situations they do have their benefits.

How an Adjustable-Rate Mortgage Works

Here’s how Business Insider explains the main difference between a fixed-rate mortgage and an adjustable-rate mortgage:

Of course, things like taxes or homeowner’s insurance can still have an impact on a fixed-rate loan, but the baseline of your mortgage payment doesn’t change much. Adjustable-rate mortgages don't work the same way.

Pros and Cons of an ARM

Here’s a little more information on why some buyers are giving ARMs another look. They offer some pretty appealing upsides, like a lower initial rate. As Business Insider explains:

On the flip side, just remember, if you have an ARM, your rate will change over time. As Barron’s explains there’s the potential for higher costs later:

So, while the upfront savings can be helpful now, you'll want to think through what could happen if you're still in that home when your initial rate ends. Because while projections show rates are expected to ease a bit over the next year or two, no forecast is guaranteed. 

That’s why it’s essential to talk with your lender and financial advisor about all your options and whether an ARM aligns with your financial goals and your comfort with risk.

Bottom Line

For the right buyer, ARMs can offer some big advantages. But they’re not one-size-fits-all. The key is understanding how they work, weighing the pros and cons, and thinking through if they’d be something that would work for you financially. And that’s why you need to talk to a trusted lender and financial advisor before you make any decisions.

Colorado Springs Social Scene

Military News and Updates

Fort Carson to host ceremony Thursday, run Saturday ahead of Memorial Day

Ahead of Memorial Day, Fort Carson will honor soldiers who died while deployed on Thursday at the Mountain Post Warrior Memorial just outside of Gate 1.

The memorial honors the 407 Fort Carson service members who have died overseas since 2003. No new names will be added to the memorial stones this year.

Maj. Gen. David Doyle, commanding general of the 4th Infantry Division and Fort Carson, is expected to speak during the ceremony that starts at 10 a.m.

Feel free to reach out with any real estate questions—I’m here to help, no matter the state!

Referrals are the biggest compliment, so send anyone my way. Until next time!