Mortgage resets a relative “non-event” per LA Times article

[DWCAP]

This article definatily understated the role of resets, But I guess it does have a point. Too bad it forgot to add that many people were not paying principle and now they will have to, or that many option arms now have higher principal, which also brings with it more interest. It just talks about the cost of the interest rate per 100k, and everyone knows that is down.

But the logical question then is “will rates remain low?” If rates have to go up to try to get some control of inflation, then we are right back where we started. So basically we will now be addicted to low rates so we dont kick people out of their homes, but inflation will become terrible and people will not be able to live, and then they will have to defalt on the morgages and be kicked out of their homes. (remember inflation hurts home prices, WAGE inflation helps them. Recessions dont bring much wage inflation.) Only difference between high rates causing repos and low rates causing inflation which causes repos like we are now is that now it will take 2x longer and we had years of fun inflation that punished the prudent, lucky and foolish alike. Thanks Uncle Ben!

[Anonymous]

It’s amazing how many people simply don’t get it. So the resets aren’t that bad. So what? There is no way they rates can stay this low so it’s only a matter of time until they are to much for many to handle. The problem isn’t the interest rate, the problem no equity and the inablity to sell or refinance a home without suffering a huge loss. Most of this stuff is simply pandering to the public and putting off anything substantial until the election is over. The suggested answers to the current problems will be significantly different depending on whether it’s a dem or repub. who wins the election.

[Anonymous]

It’s amazing how many people simply don’t get it. So the resets aren’t that bad. So what? There is no way they rates can stay this low so it’s only a matter of time until they are to much for many to handle. The problem isn’t the interest rate, the problem no equity and the inablity to sell or refinance a home without suffering a huge loss. Most of this stuff is simply pandering to the public and putting off anything substantial until the election is over. The suggested answers to the current problems will be significantly different depending on whether it’s a dem or repub. who wins the election.

[Anonymous]

It’s amazing how many people simply don’t get it. So the resets aren’t that bad. So what? There is no way they rates can stay this low so it’s only a matter of time until they are to much for many to handle. The problem isn’t the interest rate, the problem no equity and the inablity to sell or refinance a home without suffering a huge loss. Most of this stuff is simply pandering to the public and putting off anything substantial until the election is over. The suggested answers to the current problems will be significantly different depending on whether it’s a dem or repub. who wins the election.

[Anonymous]

It’s amazing how many people simply don’t get it. So the resets aren’t that bad. So what? There is no way they rates can stay this low so it’s only a matter of time until they are to much for many to handle. The problem isn’t the interest rate, the problem no equity and the inablity to sell or refinance a home without suffering a huge loss. Most of this stuff is simply pandering to the public and putting off anything substantial until the election is over. The suggested answers to the current problems will be significantly different depending on whether it’s a dem or repub. who wins the election.

[Anonymous]

It’s amazing how many people simply don’t get it. So the resets aren’t that bad. So what? There is no way they rates can stay this low so it’s only a matter of time until they are to much for many to handle. The problem isn’t the interest rate, the problem no equity and the inablity to sell or refinance a home without suffering a huge loss. Most of this stuff is simply pandering to the public and putting off anything substantial until the election is over. The suggested answers to the current problems will be significantly different depending on whether it’s a dem or repub. who wins the election.

[blackbox]

It’s just a flesh wound…………………..
lol

[blackbox]

It’s just a flesh wound…………………..
lol

[blackbox]

It’s just a flesh wound…………………..
lol

[blackbox]

It’s just a flesh wound…………………..
lol

[blackbox]

It’s just a flesh wound…………………..
lol

[Bugs]

According to the banker I was talking to yesterday, we’re looking at a good news-bad news scenario on rates.

The good news is that the rates are still low because there are still buyers for the paper.

The bad news is that it (supposedly) isn’t the foreign investors who are buying the paper, its those domestic lenders that are still solvent. It seems that since they aren’t making that many loans and they still have to make money that buying the best tranches at a discount is the next best thing.

Unfortunately, their liquidity is limited, and once they get maxed out that will be it. The other bummer is that once they buy those loans they are still vulnerable to any underperformance therein.

I’m just passing along the “rumor”. But if it’s substantially true we could soon be looking at significant increases in mortgage interest rates as these lenders run out of buyers for these loans.

[Bugs]

According to the banker I was talking to yesterday, we’re looking at a good news-bad news scenario on rates.

The good news is that the rates are still low because there are still buyers for the paper.

The bad news is that it (supposedly) isn’t the foreign investors who are buying the paper, its those domestic lenders that are still solvent. It seems that since they aren’t making that many loans and they still have to make money that buying the best tranches at a discount is the next best thing.

Unfortunately, their liquidity is limited, and once they get maxed out that will be it. The other bummer is that once they buy those loans they are still vulnerable to any underperformance therein.

I’m just passing along the “rumor”. But if it’s substantially true we could soon be looking at significant increases in mortgage interest rates as these lenders run out of buyers for these loans.

[Bugs]

According to the banker I was talking to yesterday, we’re looking at a good news-bad news scenario on rates.

The good news is that the rates are still low because there are still buyers for the paper.

The bad news is that it (supposedly) isn’t the foreign investors who are buying the paper, its those domestic lenders that are still solvent. It seems that since they aren’t making that many loans and they still have to make money that buying the best tranches at a discount is the next best thing.

Unfortunately, their liquidity is limited, and once they get maxed out that will be it. The other bummer is that once they buy those loans they are still vulnerable to any underperformance therein.

I’m just passing along the “rumor”. But if it’s substantially true we could soon be looking at significant increases in mortgage interest rates as these lenders run out of buyers for these loans.

[Bugs]

According to the banker I was talking to yesterday, we’re looking at a good news-bad news scenario on rates.

The good news is that the rates are still low because there are still buyers for the paper.

The bad news is that it (supposedly) isn’t the foreign investors who are buying the paper, its those domestic lenders that are still solvent. It seems that since they aren’t making that many loans and they still have to make money that buying the best tranches at a discount is the next best thing.

Unfortunately, their liquidity is limited, and once they get maxed out that will be it. The other bummer is that once they buy those loans they are still vulnerable to any underperformance therein.

I’m just passing along the “rumor”. But if it’s substantially true we could soon be looking at significant increases in mortgage interest rates as these lenders run out of buyers for these loans.

[Author]

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