Again people keep missing the point Ive been trying to make. When rates were that low the lenders didnt offer anything but 30 yr and if hybrid adjustable (10/1, 7/1. 5/1) the rate was not all that different. We have all gotten used to only 30 yr rates.
Youve all forgotten about those hybrid products. When I bought my home in 1999 it was with a 5/1 ARM at 7.125%. Virtually no one keeps a loan for 30 years and few are still in place 10 years later. We are going to see the 10/1 and 7/1 come roaring back into favor very quickly. Its what the market always does when rates are no longer falling. Mark my words this market has more legs than you think. Im not saying more 20%+ years but we arent done going up and we are not falling appreciably anytime in the next few years. Feel free to bookmark this post. This will be yet another prediction I’ll be proven right on
