This is the Bank of America monthly ARM reset schedule by sector. And by sector they mean how crappy your credit is, with subprime being the worst and usually the shortest time until your rate resets. The chart shows the reset schedule of all adjustable rate mortgages (ARMs) until the end of 2009. Now call me crazy but it looks like we still have a long way to go before it really starts to get ugly.
For All those who are preaching that the worst is behind us for foreclosures and real estate prices, this chart tells a very different story.
Friday, September 21, 2007
Chart of The Day: BofA ARM reset schedule
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4 comments:
This just proves that when it comes to economics, everyone wants to be a prophet. It also proves how ridiculous the predictions can be: the sky is falling one day and we are all buying beach houses the next.
If you predict something long enough probability is on your side; which is why I will maintain until the day that I die that New Kids on the Block will get back together.
"'As a result, even as we see lower construction as a positive, we are hesitant to get more constructive on homebuilding stocks until we at least see a sign of stabilization in traffic. Our concern is that buyer traffic is declining even as home prices fall,' the analyst wrote.
Oppenheim also pointed out that the Federal Reserve's cut in the federal funds rate this week could lower short term rates and soften the impact of resetting rates on adjustable-rate mortgages.
Oppenheim also pointed out that the Federal Reserve's cut in the federal funds rate this week could lower short term rates and soften the impact of resetting rates on adjustable-rate mortgages."
http://biz.yahoo.com/ap/070921/sector_snap_homebuilders.html?.v=1
So is the best time to start loading up on housing stocks the end of 2008?
"'As a result, even as we see lower construction as a positive, we are hesitant to get more constructive on homebuilding stocks until we at least see a sign of stabilization in traffic. Our concern is that buyer traffic is declining even as home prices fall,' the analyst wrote.
Oppenheim also pointed out that the Federal Reserve's cut in the federal funds rate this week could lower short term rates and soften the impact of resetting rates on adjustable-rate mortgages.
'However, we don't think this will be sufficient to prevent a high level of delinquencies and foreclosures, as the rate reset is still likely to lead to a 20 percent higher payment,' he wrote."
http://biz.yahoo.com/ap/070921/sector_snap_homebuilders.html?.v=1
So is the best time to start loading up on housing stocks the middle of 2008 after the
Good post.
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