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OneFly1035 t1_ja8s460 wrote

Reply to comment by Mariom2 in US Pending Home Sales Surge 8.1%, Most Since June 2020 — Bloomberg by cbusoh66

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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