[quote=sdrealtor]Scarlett
9% fixed rates would have an impact I just dont beleive we will see them anytime soon. The other factor is when 30 year rates rise above a certain level (roughly 8%) buyer switch to adjustable products for purchases and skip the 30 yr fixed rates which mitigates some of the impact of higher rates.[/quote]
The reason ARMs were pushed during the bubble was because of the low rates. The lenders were shifting the rate risk (of rising rates) from themselves to the borrowers. In a high-rate environment, you’ll be hard pressed to find a lender who wants to give you an ARM, and it will probably cost a pretty penny to get one, IMHO.
