PS, I think you’re dead-on right! Folks talk all day about rates, but I think with the scary number of foreclosures that are going to happen with the coming rate resets, we’re definitely going to see some serious federal legislation or rulemakings by the FDIC that will significantly restrict or even eliminate most “exotic” mortgage products. Once those restrictions take effect, lowering rates won’t be nearly as effective, because the specuvestors and low-FICO folks just simply won’t be able to get financing.
