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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Jim McMannis who wrote (24296)	10/6/2004 1:01:35 AM
From: TH	Read Replies (1) \| Respond to of 306849

jm, Jetson has made some very good observations. I never thought rates had much to do with it. I figured the mortgage wiz kids would find a new angle to keep it going for a while longer. For me it has always been the ratio of income to price, and that trend was clearly unsustainable. If I remember parts of California had a 5.5 ratio (Bay area if I remember correctly). The second wave will be from rate increases (which may never come anyway), after those one-year ARMS adjust and foreclosures start. As a side note, today I heard my very first commercial on Detroits news station (WWJ) for some kind of mortgage service specifically to prevent the loss of your home from foreclosure. There were no details provided about the service, but I find it telling that this market must now be big enough to justify radio spots. Good Trading TH