When you get a mortgage loan, you generally can choose between getting a fixed rate or an adjustable rate. Your interest rate with a fixed rate stays the same for the life of the loan and changes only if you choose to refinance. If interest rates rise, you still pay the same lower rate. When interest rates are low, most people get fixed rate mortgages.
Interest rate lower?
With an adjustable rate, you typically get a lower initial interest rate than you would with a fixed rate mortgage. But the low initial rate goes up after a set period, depending on the terms of your loan. People might choose an adjustable rate if they plan to move soon, before their rate adjusts up. When interest rates are high, people often get adjustable rate mortgages. If rates fall, so does the rate they pay.