It’s only just the beginning! Bring on the adjustables![/quote]
Damn…I didn’t think you’d be wrong, but I didn’t want you to be right.
“Oh no, not again.”[/quote]
Well, adjustable rate mortgages are probably not bad by themselves, so that probably isn’t alone enough to cause alarm…
It’s when the banks stop dropping lending standards and anyone that can qualify for a loan that is barely breathing, then that’s a problem.
But we aren’t there….yet…..
I look at it another way….ARMs probably are a short to mid term way to allow some buyers to keep buying. It’s not an end all be all for everyone, but probably away to get around it. 7/1 or 5/1….. not deal with it for another 5-7 years. A lot of things can happen 5-7 years later. Maybe good, maybe bad. dont’ know. most people probably don’t think that far in advance.
And if banks are stupid enough to bring back liar loans, well then we have an entire new generation of stupid buyers that pay way above their means that will end up in a short sales/ REO for the rest of us buy at a discount, just like before…
Not that I wish that to happen… But if it were to happen, it is what it is.
