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There's very few of those. Banks were mostly securing fixed mortgages and there hasn't been an uptick in adjustable since the great recession... until now as the interest rates shoot up.
Yep. ARM's only make up roughly 13% of total loan volume now as opposed to close to 60% back in the runup to the housing crash. Not all that significant. Plus lending criteria is FAR stricter than it was back then when anyone with a pulse could get a loan. This won't be anything close to 2008.
No, Real Estate will not crash. The average cost of materials is up 200-300%. Labor costs are going through the roof. Housing will undergo digestion which is healthy. Some healthy price digestion then off she goes again.
People who bought over-priced homes with adjustable mortgages at 3% are going to default as mortgage rates increase. Same thing that happened in 07.
ARMs have caps on them typically so the rate movements by year are limited and often have a lifetime cap. Far too many people don’t understand ARMs past the headlines they used to read about them
The houses in the pictures are dumps. I wouldn’t pay half that price to live in California.
No kidding. I have never lived in anything even close to that. Not even when we were little, and my parents did not make much money back then. Hell my mom would have flat out refused to live in such a dump.
ARMs have caps on them typically so the rate movements by year are limited and often have a lifetime cap. Far too many people don’t understand ARMs past the headlines they used to read about them
homeowners do get nice raises these days,some pay cash for their house so there is no mortgage
The houses in the pictures are dumps. I wouldn’t pay half that price to live in California.
I see that first one is already under contract! Damn, a tiny 850 sq fit dump on a postage stamp lot. My house here in FL looks like a castle compared to that (a restored mid century on a huge corner lot). I can't believe people are willing to pay that, but I guess they are.
^^^
This reminds me of a joke, although I can't remember the comedian who said it. He was talking about the extraordinarily high real estate prices in California (and this was a long time ago) and said that that was an indication of how much people were willing to pay not to have to live in flyover country.
Yep. ARM's only make up roughly 13% of total loan volume now as opposed to close to 60% back in the runup to the housing crash. Not all that significant. Plus lending criteria is FAR stricter than it was back then when anyone with a pulse could get a loan. This won't be anything close to 2008.
2021 was an insanely competitive market for buyers. You had to have all your ducks in a row to even be considered. You wouldn't believe the hoops we had to jump through to get that mortgage in 2021. I consistently have earned an extra 25% of my income in overtime for 24 years. They would only use my base salary and not my real income. We have a FICO in the 800s. I had 20% down and had to put up that plus another 16000 because the appraisal came in low. I got a fixed of 3.25 fixed rate. I don't think many people who were in a position to be able to buy in that market went for adjustables.
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Damn, a tiny 850 sq fit dump on a postage stamp lot. My house here in FL looks like a castle compared to that (a restored mid century on a huge corner lot). I can't believe people are willing to pay that, but I guess they are. 
