Mortgage Borrowers Play a Bettor's Game

With the economy facing a Fed tightening cycle, why is a growing percentage of prospective homebuyers gambling on adjustable-rate mortgages?

The odds would seem to be against such a bet, with fed funds all but certain to rise this summer and fixed-rate loans still carrying historically low rates just above 6%.

Still, about 35% of all mortgage applications are for those with rates that fluctuate with the market, the highest such percentage in almost a decade and more than double the rate of 2003. ...