The way I read that graph the 01/2007 numbers increase by 35% in the next 3 months and they don’t come back down below that level for 15 months after that.
We can figure that the percentage of marginal borrowers among those ARMs increases faster than the sheer numbers of ARMs, and their level of sensitivity also increases. In effect, even though the numbers of resets only increase by 35% – 50%, the numbers of overstressed borrowers may double, or worse, as time goes on.
