When Do You Believe The Next Part Of The Housing Bubble Will Collapse, Reset Of Option Arm And Alt-a Mortgages?
I learned about these mortgages from a 60 Minutes program that I watched months ago.
So far the Federal Reserve has been extraordinarily reluctant to raise interest rates (they are currently at 0-.25 %) allowing both mortgages to reset, when do you believe interest rates will raise for the next final part of the housing bubble to pass?
Option ARM resets are scheduled mostly for 2010 and 2011. The peak of these resets will be in September 2011.http://www.businessweek.com/lifestyle/co…
I don’t believe it will take the interest rates to rise for the housing slump to continue. it will keep going down and more will lose their homes to foreclosure until employment is way up and the inventory of homes on the market has declined. The opt-arm and alt-a are already starting to reset adding to the current problem for the next few years. Most homeowners were expecting to refinance at a lower rate that they no longer qualify for, or isn’t available.
Hmmmm…. that’s an interesting point; never thought of the next bubble to be burst but of course you’re right. There’s one right around the corner but I’m sorry I don’t think I could hazard even an educated guess as to when that will happen.