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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

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To: russwinter who wrote (41966)	9/21/2005 2:46:54 PM
From: ild	Read Replies (2) of 110194

<<<Incredibly, a refi boomlet going on at higher rates. Just refiing into fixed rates out of ARMs, and doing equity extractions while at it?>>> Berson thinks you are right: Since 30-year FRM rates today are less than the upwardly adjusted ARM rates (and much less than the expected ARM rates a year from now), ARM borrowers have an incentive to refinance into FRM loans. This may help explain both the falling ARM share as well as the surprisingly strong refinance applications in the MBA survey. fanniemae.com OTOH many may be refinancing into Option ARM as they can't afford neither increased ARM rates nor fixed.

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