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Mariom2 t1_ja8rr4k wrote

Reply to comment by OneFly1035 in US Pending Home Sales Surge 8.1%, Most Since June 2020 — Bloomberg by cbusoh66

It’s unsustainable for those people that had ARMs and those who were hit with big property tax influxes. Something has to break and it’s not going to be the interest rates or renters IMO.

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OneFly1035 t1_ja8s460 wrote

The ARM crisis will be in 5 years from now if rates are still high. I doubt many people had ARMs prior because rates were extremely low for a long period of times. Even those that did the ARMs now are capped at maximum rises total and per period.

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rp2012-blackthisout t1_ja938nb wrote

no one is on ARMs vs '08.

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throwitawayCrypto t1_ja941lp wrote

I need the next MB to come out of the woodwork and do the math on this bc I have no idea how to get that data but it’s definitely in the works

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rp2012-blackthisout t1_ja9fkmz wrote

In mid-2022, adjustable-rate mortgages made up nearly 10% of all new home loan applications, according to the Mortgage Bankers Association

In 2000 it was 30%, in 2005 it was 35%.

But to help your case, in 2015 it was 5%. So yes, we're way off the highs and lows of ARMs.

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lost_in_life_34 t1_ja9h5rz wrote

towards the end of the 2008 bubble no one really had ARM's cause they couldn't afford them.

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they had interest only 1 year loans that were no income of documentation verification

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007baldy t1_ja8yngs wrote

Plus if they do the 5/1 or 7/1 arms, rates should be dropping in those time periods and they won't even be into the rate adjustment period before they can refinance at a lower fixed rate.

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