[RegulatorCountry]

"That's assuming that interest rates will stay at the point where you can get a 5.5% ARM."

Referring back to the article that is the subject of this thread, it wasn't my assumption that interest rates will settle in somewhere lower than 7%, but the authors. That's what the 5.5% was roughly based upon. If rates go higher than the author posits here, then ARM loans go with it, at a proportionally lower rate.

[hunter112]

Good point, but I think we will see 30 year fixed rates at 8, maybe 9 percent when all is said and done. If you look at rates over the last three decades, that's below the average, but way above what fueled the boom of the last few years.

I see houses of cards ready to collapse. It will affect everyone, in some way or another.