Which of the following was one of the major developments in the history of conventional mortgage loans since the 1930s?

The introduction of adjustable mortgage loans represents a significant development in conventional mortgage financing since the 1930s. Adjustable-rate mortgages (ARMs) offer borrowers a lower initial interest rate compared to fixed-rate mortgages, which can be appealing for buyers looking to manage their short-term financial commitments. With ARMs, the interest rates can fluctuate over time based on market conditions, which allows for potentially more affordable monthly payments during the initial fixed period.

This development has broadened the range of options available to homeowners, contributing to increased accessibility to housing finance, especially during periods of rising interest rates. Additionally, it has transformed how lenders structure loans to cater to different borrower needs and market conditions.

In comparing this to the other options, while government-backed mortgages, interest-only loans, and fixed-rate government subsidies also play critical roles in the evolution of mortgage products, the introduction and growth of adjustable-rate mortgages is notable for its direct impact on borrowing strategies and market dynamics throughout the decades.