High mortgage interest rates during the spring home season drove home sales lower, cooling home prices in more marketsDemand cooled among all types of buyers, including investors and buyers looking at newly built homes. While buyers are increasingly looking at adjustable-rate mortgages to help with surging homeownership costs, persistent imbalances between buyers and sellers in some markets continues to put pressure on home prices.Let’s look at where the current landscape stands:The number of mortgages with delinquencies of six months or more fell to 2008 levels. Approximately 100,000 borrowers were six months or more past due on their mortgages, a level not seen since before the Great Financial Crisis that started in 2009. At the same time, the share of mortgages in foreclosure fell to 0.2%, which was the lowest share since early 2022, indicating that many borrowers who were in the late stages of delinquency were able to avoid foreclosure.The adjustable-rate mortgages (ARMs) share of originations rose to 15.5% of the dollar volume of conventional single-family mortgage originations in May 2024. This share is the highest of 2024, following a slight dip in late 2023. The increase in ARM originations followed the rise in mortgage rates. The share of ARMs declined during the pandemic and hit a 10-year low of 4% in January 2021 when 30-year, fixed-rate mortgages fell to an all-time low. However, as fixed-rate mortgage interest rates increased from below 3% to record levels over the last two years, ARMs have gained renewed interest.