LK – In my experience 40% of the purchasers who bought last year were not speculators using ARMs.
Yes, the percent of buyers using ARMS and other exotic loans was high but I don’t believe it is something to become fearful of at this point in time. I believe some folks will be hurt by their greed or lack of rational financial judgment. I also believe most will handle whatever the upcoming weather may be.
I don’t see the sky falling around me and until I do, until clear and convincing evidence presents itself that we are on a path to destruction, I am simply going to sit sight tight and observe whatever is next. I believe worrying is a waste of time because our greatest fears never come to pass for to know what they are predisposes them from ever happening. Don’t you think a lot of those folks who took out ARMS are already anticipating rate adjustments and taking actions to deal with those changes?
Planning for the infinite number of possibilities that could occur, focusing on those with the highest probabilities of happening, is a good use of your time.
