I’ve made this point previously, but this scenario only becomes an issue if the ARM adjusts at a rate higher then it’s currently at.
My ARM adjusts this year, and my rate is going down somewhere between 1-2% based on today’s rates! I’ll be below comparable rental rates by a good margin.
We have artificially low rates right now, and I believe we are going to see the same for years to come. If you keep rates low, and keep pumping money into the system – eventually inflation will catch up.
