| View previous topic :: View next topic |
| Author |
Message |
balor123
Joined: 08 Mar 2008
Posts: 1204
|
 Posted: Mon Mar 30, 2009 6:42 pm GMT Post subject: Graph of Monthly Mortgage Rate Resets |
 |
|
Mortgage Crisis Over? Please, It's Just Beginning
From this graph, it appears that housing market would naturally stabilize in 2012 - 2013 barring government intervention.[/url] |
|
| Back to top |
|
 |
JCK
Joined: 15 Feb 2007
Posts: 559
|
| Posted: Mon Mar 30, 2009 8:33 pm GMT Post subject: |
|
|
The resets are going to have a muted impact as long as rates are so low.
http://mortgage-x.com/general/indexes/libor.asp
Anyone with a standard ARM is going to be just fine, and may even see their payment decrease if their mortgage resets in the near future.
The option-ARM/interest only ARM may still have problems, because those guys have to start paying principal. I don't know the relative proportions of the different ARM types. |
|
| Back to top |
|
|
JCK
Joined: 15 Feb 2007
Posts: 559
|
| Posted: Mon Mar 30, 2009 8:34 pm GMT Post subject: |
|
|
Should've read the whole link before posting, I guess. 
Looks like a lot of option-ARMs! |
|
| Back to top |
|
|
balor123
Joined: 08 Mar 2008
Posts: 1204
|
| Posted: Mon Mar 30, 2009 10:12 pm GMT Post subject: |
|
|
| Barring government intervention covers the low rates. It's not clear that we'll continue subsidizing mortgage rates through that entire period nor that the rates will remain so low even so. Furthermore, there are many people who won't refinance for various reasons (don't qualify, too lazy, etc) or who might get suckered into another bad deal. |
|
| Back to top |
|
|
JCK
Joined: 15 Feb 2007
Posts: 559
|
| Posted: Mon Mar 30, 2009 10:20 pm GMT Post subject: |
|
|
| balor123 wrote: | | Barring government intervention covers the low rates. It's not clear that we'll continue subsidizing mortgage rates through that entire period nor that the rates will remain so low even so. Furthermore, there are many people who won't refinance for various reasons (don't qualify, too lazy, etc) or who might get suckered into another bad deal. |
Point taken, but I'm just saying that ARM resets, today, aren't going to have a huge effect on the market in the immediate term. Down the road, who knows?
And suckers are born every minute anyway, low interest rates or not, so some people will sign bad deals regardless. |
|
| Back to top |
|
|
balor123
Joined: 08 Mar 2008
Posts: 1204
|
| Posted: Tue Mar 31, 2009 12:51 am GMT Post subject: |
|
|
| Yeah it's not clear that ARM resets are a problem. We need to know how many people with ARMs will be ineligible for resets, though even then there are many other factors driving housing prices. |
|
| Back to top |
|
|
|
FAQ
Search
Memberlist
Usergroups
Register
Profile
Log in to check your private messages
Log in
