Article: California Home Buyers Are Turning Back to Adjustable-Rate Mortgages.

Byline: Sue McAllister

Dec. 27--In response to rising home prices and mortgage rates, an increasing portion of California home buyers are opting to finance their purchases with adjustable-rate mortgages, a real estate information company said Friday.

Santa Clara County had the highest percentage of buyers who financed their homes with adjustable-rate mortgages, or ARMs, of any area in the survey: 68 percent. The survey by DataQuick Information Systems looked at home sales that were completed in November.

Statewide, 52 percent of those who bought homes last month used ARMs, the first time since February 1995 that more than half of buyers did so. ...

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