today. The Nasdaq though dropped 52 and the S&P fell 17. And so as mortgage rates remain above 7, some would be homebuyers are looking for another option to help them buy. And that option is an adjustable rate mortgage. It's a tool many have cheered as a home buyers dream, while others warn it's a nightmare that offers would be homebuyers false hope. Let's bring in our business and tech reporter Scott Budman Scott. Some of us maybe right here, have been down this road with adjustable rates mortgage with mixed success. Let's explain it to those who haven't. Right. You know, we talk about a fixed rate Garvin, and that's where you're locked into a rate for the duration of your mortgage, typically 30 years, maybe sometimes 15. But an adjustable rate is one that can change the mortgage rate as the overall rates move, which means your monthly payment could go down over time. But it could also go up. I like it those buying houses now are according to Silicon Valley agent Lindsay Gridley, choosing the adjustable rate more frequently than at any time during the last several years. They feel hopeful they're in the job market, they know what's happening on their local economy scale, so they feel confident in their jobs, their situation, their local investment into the real estate market. Here's one reason why. While the average fixed rate mortgage stands at 7.29, the average adjustable rate 6.6, but an adjustable rate at this point in time, is a little bit like playing the lottery. It can be much riskier because if rates drop your monthly payment drops too. But what goes down can also go up. Meaning if rates rise, so does your payment. Those getting adjustable rates are banking on that future drop. I mean, you could really be riding a roller coaster for an extended period of time, and you may want to ride that roller coaster in all honesty, because if it is, you know, lower than what you originally locked in at, then that's your benefit. Maybe not the 3% we saw a couple of years ago. After all, that was when our economy took a big hit. But I think people are hoping for five instead of seven. So Scott, this means when you take an adjustable rate mortgage, you are making a bet and not only are you making a bet, you're making a bet with the biggest purchase you're ever going to make, right? And you're making that bet with the overall economy. Garvin, we were just talking about interest rates. Will they go up? Will they go down? That has so much to do with inflation and so the adjustable rate means you're not locked in. You really have to pay attention to what's going on in the overall economy before you write that monthly check. And that gives a lot of people anxiety. And really there are two ways, many ways actually to do this. But the two main ways people right now, though, because they are optimistic that rates will go down, are jumping into those adjustable rates. I mean, the experts have trouble predicting where the economy is going. I don't know how I would it's a fool's errand to predict. Right. So
