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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory
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To: piggington who wrote (35938)7/13/2005 10:21:57 PM
From: mishedlo  Read Replies (1) of 110194
 
I agree with everything you are saying, in terms of the future problems... I am just unconvinced that it is happening quite yet. I think the vast majority that 15k or so inventory is people who WANT to take profits or to move up, not people who have been forced via ARM resets into selling. Do you think a lot of people (enough to move the market) are currently in that boat?

rich

As someone in an interest only loan (75% equity right now)
I can feel the pressure a TINY bit. If 3 more hikes are coming I would be better off going back to 15 year fixed. I would do it with no closing costs of course.

Now I was not counting on 2% 3% or even 4% loans.
The question is how many were counting on 2% or 3% and for how long. The carrying costs of 0% down in CA on the enormous prices there just might have some sweating right now. What happens on even a modest 5% price decline with one or 2 more hikes?

Mish
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