[Hydroshock]

Calm them for how long? In the next 12 months a heck of a lot of arms will reset.

[Orange1998]

“UBS effective August 9 has suspended mortgage
operations. Liquidity has completely vanished in the
mortgage markets.”

[cgbg]

This is the "calm" before the real storm.

The next year will be a wild one in the financial markets.

This may be the first time ever that drops in home values actually cause a deep recession.

A lot of folks around here are still in deep denial, but they better start paying attention--resetting ARMS (based on higher interest rates which reflect the perceived risk in the mortgage market) in the next few months will affect a lot of middle class folks with decent credit, not just the subprime market everyone is discussing.

Higher interest rates will also keep potential financially qualified buyers on the sidelines--delaying their purchases in the hope that rates come down and sellers lower their unreasonable expectations.