This article definatily understated the role of resets, But I guess it does have a point. Too bad it forgot to add that many people were not paying principle and now they will have to, or that many option arms now have higher principal, which also brings with it more interest. It just talks about the cost of the interest rate per 100k, and everyone knows that is down.

But the logical question then is “will rates remain low?” If rates have to go up to try to get some control of inflation, then we are right back where we started. So basically we will now be addicted to low rates so we dont kick people out of their homes, but inflation will become terrible and people will not be able to live, and then they will have to defalt on the morgages and be kicked out of their homes. (remember inflation hurts home prices, WAGE inflation helps them. Recessions dont bring much wage inflation.) Only difference between high rates causing repos and low rates causing inflation which causes repos like we are now is that now it will take 2x longer and we had years of fun inflation that punished the prudent, lucky and foolish alike. Thanks Uncle Ben!