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Originally Posted by al_bundy
libor is around 2.75% which means the loan resets will be around 5% to 5.5% which is a lot better than 7.5% with last year's fed funds rate
those charts are old news. the big question is how many people will refi, how many will keep their loans and how long will the fed be able to keep rates this low
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Wow, the blind squirrel finally stumbled across an acorn.
I totally agree with your assessment. The rate reset will be a non-event since the Fed has whacked rates. The more troubling problem is that the drop in house prices makes it more challenging for leveraged Merkins to refinance, but creative legislators, reglators, etc. seem to be working out solutions to the problem.
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"And Jesus spake, 'Become thou now fishers of adjustable rate mortgages'" - New Conservative Bible
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