It’s possible that the effects of the second wave of ARM re-sets will be less than you suspect.
Consider that the second wave of ARM resets starts about 2-2.5 years from now and extends to about 5 years from now (… I think … I can’t find the chart right now). I believe that one potential outcome is that the effects of the first wave and the housing bust will have caused rates to drop by the time the second wave of ARM resets hit, giving relief to these folks. In some cases the adjustments may result in lower rates.
I think the second wave of ARM resets will have much less effect than the first. AT that point in time, it’ll be excess inventory hanging over more than ARM resets driving the market
Not saying that’s what will happen, just saying that it could be a consideration.
