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

To: russwinter who wrote (25962)	2/7/2005 3:54:31 PM
From: Wyätt Gwyön	Read Replies (1) \| Respond to of 110194

yeah, but if you consider a lot of markets could be pricing in 3.75% interest only, which requires short ARMs, a transition to 10yr will be a couple hundred bp higher and probably require some principal payments (gasp!). the monthly check will be higher in a world where people buy based on the monthly instead of the house price. that alone could knock some bubble markets. if nothing else it will be bad for disposable income and discretionaries at the margin.