cobblestone

Options Arm Recasts: Hype or Not?

Looking at the charts you will see that we are in an approx. 12 month window of "less bad news". Starting around March 2010 through March 2012 foreclosures will escalate. Were Option ARM and Alt A loans refinanced? Given the rapid decline in value of the underlying collateral and accelerated unemployment, most likely not. My concern for the next few years is the effect of combined excess inventory, higher interest rates, higher taxes at the State and Federal level, higher fuel costs, and rising unemployment.