Thursday, February 04, 2010

Not Over

This is from a few weeks ago, but the graph should scare you. Basically, as I've been shouting for some time now, there's still a ticking time bomb waiting to blow up as Option ARMs recast. Interest rates are still low, so the issue isn't resetting rates, the issue is when people can no longer make interest-only or neg-am payments on their mortgages, making them unaffordable.