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

To: Paul Kern who wrote (46036)	11/23/2005 12:09:34 PM
From: Ramsey Su	Read Replies (1) \| Respond to of 110194

a little more than interesting, kind of mind boggling to me. Now that is telling me a totally different picture. If ARMs are now so dominating, there can only be 2 reasons. One reason is consistent with the flattening yield curve. Borrowers are anticipating cuts in short term rates and the ARMs will adjust lower in the future. However, as I opined in my previous post, by taking a fixed rate mortgage now, refinancing is always an option if the rates come down without assuming the risk of rates going up. The other reason obviously is qualifications. Are the borrowers so tapped out that ARMs are the only option?