There is no equity, so there are no refi’s. The artificially low rates kick the can down the road, and the whole scary ARM reset chart is more bark then bite – right now.

This is what makes up a large portion of the Shadow Inventory!

Very, very, very few are going to write another 20%+ check in order to refinance.

The question is which will come first – higher rates, inflation, a bailout, or a foreclosure. At any rate… as long as the teaser rates keep getting extended….