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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: mishedlo who wrote (24902)	1/18/2005 11:23:14 PM
From: russwinter	Read Replies (1) \| Respond to of 110194

<Well... currently (and for the last few years, or so) the 1 year ARM has been a bit more rare.> With the flat yield curve now, the 3/1, 5/1 are popular (as Tom indicated). However if you read the Fannie Mae piece I posted earlier, Message 20960037 it said that in the very active 1H, 2004 when Easy Al got his pom poms about ARMS, and when fed funds were still 1.0%, 34% of all mortgages (and there were alot of them taken then) were ARMs. And the ARMS broke down like this during 1H: one year traditional 30%, 3/1 15%, 5/1 40%, 7/1 11%, 10/1 3%. We also know that a bunch of 3/1 were done throughout 02-03 during the mutha refi boom. Additionally of the one year ARMs the scuttlebutt is that many were subprime folks, who also used interest only 3/1, and 5/1's. I think ARMS rate resets will be a big economic negative, if they aren't already.