While the popularity of adjustable-rate mortgages has declined sharply, they still account for one in seven mortgages and are in no danger of being dropped from lenders' arsenals, according to Jon Holm, president of Holm Publications, Milwaukee.
Adjustables accounted for just 14% of loan originations in February, according to the Federal Housing Finance Board. That share was the lowest since the board began tracking origination shares in 1983. Since February, the share has rebounded a bit. But in February 1984, ARMs accounted for half of loan volume, the board's figures show.