CNBC has heard from one strategist that she believes it is still an “acceptable environment” for people to borrow money (including mortgages) despite the rising interest rates.

Kristina Hooper (chief global market strategist, Invesco) stated that although some borrowers experienced “whiplash”, when they saw their mortgage rates rise by around 2.2%, there was still reason to believe.

She stated that “we’re currently living in a very high rate environment and I suspect that when the Fed completes with its tightening cycles, we’ll still have a very low interest rate environment relative to historical precedents.”

Hooper, a newlywed in 1996, reflected on her personal experience with buying a home as a “starter house” and sharing it with her husband.

According to her, the “sliding scale” mortgage calculator that was provided by the bank lender they spoke with showed them the monthly repayments for each $1,000 borrowed. It varied depending on their interest rate. It ranged in price from 6% up to 20%. Hooper explained that the scale reflected changes in interest rates over many decades.

Hooper explained that “I have held on to it because it was such an a vestige from the past and reminded of history”, adding that in 1981 her parents’ mortgage rate was 13%.

Hooper also acknowledged that some might feel more comfortable with rising interest rates due to rising debt. These are the Federal Reserve raised interest rates by half a percentage pointThe Federal Funds Rate was increased to 0.75-1% in May.

The data was released by ExperianThe U.S. overall debt level rose 5.4% to $15.3 trillion between the previous year and April 2021. The third quarter 2021 saw an increase in mortgage debt to $10.3 trillion. This is a 7.6% increase from the $9.6 trillion recorded in 2020.

Hooper stated that those with fixed rates are wonderful. Fortunately, we do not have the same kind of mortgage products that we did before the financial crisis. There was a reset that took place after several years. Many couldn’t afford to pay their mortgages.

“So that’s certain the good news. However, those with variable rates will still be buying. Even though rates are higher it will seem a lot more affordable,” she said.

According to the Mortgage Banker Association, their seasonally adjusted index for April showed that demand for adjustable-rate mortgages (ARMs) had doubledThree months ago, it was 9%

Although ARMs offer lower interest rates than 30-year fixed-rate mortgages, they are still considered to be slightly more risky. You can fix ARMs for five to seven years or ten years. However, they adjust when the market rate changes.

— Diana Olick from CNBC contributed to this article.