IONE, the main thing working against the more traditional stagnation is the number of people that bought in the last 2-3 years that financed with ARMs that could only afford the payment based on the teaser rate or using other features like the minimum payment on the Option ARM.

The reality is that bewteen 60-80% of the people that bought in the last two years could not afford their home mortgage using the actual mortgage interest rate or long term fixed rate.

As they run out of time, the race to exit will begin for those that find themselves in an unsustainable situation.