[quote=SD Realtor]Take a 600k home with 20% down. At 3.5% your p/i is around 2155, at 4.5 it is 2430, at 5.5 it is 2725 and at 6.5 it is 3030. So in about 6 weeks we have added around 280 smackers per month to a payment. That hurts some and has an effect. At 5.5% we are adding almost 600 clams a month, close a 20% higher payment. To me that will indeed claim some buyers. However the market will also respond and sellers will need to adjust pricing. We will see what happens.[/quote]

SD Realtor, what percentage of the buyers do you think in the last 3 years have taken on ARM as opposed to 30-yr loan?