1. People with resetting ARMs get a huge bailout-like break.
2. People who are on the market for a home will hardly notice any difference (other than generally better mood at lender’s office)
I would agree. Though I think break people might get on their ARM resets will be more like a life-preserver than a “huge bailout-like break”.
I may be in the minority opinion on this, but this is why I think the initial wave of resets which peaks in October and last throughout the first part of 2008 is more important than the second wave (which is spread out for several more years). The second wave will have the presumed benefit of short-term rate declines precipitated in part by the damage to the economy done by the first wave which we are currently experiencing.
