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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 (26846)2/21/2005 3:01:29 PM
From: John Vosilla  Read Replies (1) | Respond to of 110194
 
Most mortgage companies are quoting 5.625% now. ARMS (w/o points) are now generally over 5.0%.

Aren't those 1% starting option ARM programs with negative amortization going to keep a lot of buyers in the game until underwriting standards are tightened? Will it take a major pickup in loan defaults nationwide or will just a soon to be flat yield curve do the job?