$2 Trillion House of Pain
USA Today had a great story on a real problem facing the sickly housing market: Adjustable Rate Mortgage resets.
In a nutshell, an estimated $2 TRILLION in ARMs are seeing their rates and payments adjust higher this year and in 2007. That's about a quarter of all mortgages outstanding. Too many fools bought too-high priced homes in the too-speculative real estate boom. Now, they're going to get creamed as their monthly payments rise 20% .. 30% ... 50% or more. Ugh.
As an aside, it's amazing to me that just a few years after the dot-com bubble burst, people were so easily swept up in the housing bubble. Doesn't anyone have half a brain anymore?
In a nutshell, an estimated $2 TRILLION in ARMs are seeing their rates and payments adjust higher this year and in 2007. That's about a quarter of all mortgages outstanding. Too many fools bought too-high priced homes in the too-speculative real estate boom. Now, they're going to get creamed as their monthly payments rise 20% .. 30% ... 50% or more. Ugh.
As an aside, it's amazing to me that just a few years after the dot-com bubble burst, people were so easily swept up in the housing bubble. Doesn't anyone have half a brain anymore?
posted by Mike Larson at
3:58 PM
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