this is interesting stuff. two years ago 83% of the buyers in San Diego used adjustable rate mortgages as purchase money and 63% used arms to refinance.
And apparently the two year lock in are about to expire this month and for every month going forward.
Caveat - We have been hearing this cry for years. Will the bears be right this time? Prices of the median san diego home were down 3% from a year earlier. Where is all the pain the blog guys and housing bears are predicting.
I know there plenty of people looking to buy a 20-30% break in prices. Perhaps there is just too strong a bid under this market.
In my opinion as long the the banks are wiling to lend to lend out there the pain will not be widespread. (but I could be wrong, please do not selling puts on housing futures).
SignOnSanDiego.com > News > Business > Dean Calbreath -- On many mortgages, reckoning day coming