InvestorInsight has an interesting chart of the amount of adjustable rate mortgage resets that will be happening over the next year or so. While we think that there have been an incredible amount of mortgage resets in the past few months the real bubble will be occurring starting in January of 2008. For the period of January to April expectations are that 370 million billion in adjustable rate loans will reset.
Now in reality, most of these loans will be refinanced or kept up to date, but if the credit situation does not get figured out, there are going to many households that are going to be stressed.
Adjustable Rate Loan Resets For 2007–2008
Month Millions January-07 22 February-07 25 March-07 35 April-07 37 May-07 36 June-07 42 July-07 43 August-07 52 September-07 58 October-07 55 November-07 52 December-07 58 January-08 80 February-08 88 March-08 110 April-08 92 May-08 76 June-08 75 July-08 50 August-08 35 September-08 26 October-08 20 November-08 15 December-08 17
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Wow. Apparently, we haven't seen anything yet!!
Now in reality, most of these loans will be refinanced or kept up to date
Source for this ray of sunshine? Look at the terms of 2/1s in 2005 or 1/1s in 2006 or 3/1s in 2004. Now apply current refi conditions and tell me that a "majority" will accept the rest or be able to refi?
One thing… I think you mean "billions" at the top of your chart there. Which is, of course, 1000 times more terrifying.
Thanks John! It is corrected!
T
Wow, you really foretold what's gonna happen this year! (came here thro google search)
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