19 juin 2006
http://www.nytimes.com/aponline/busines ... ref=slogin
ARMs are now starting to fall by the wayside as the difference in interest rates narrows. The average rate on a 30-year fixed rate loan in May was 6.60 percent compared to 5.63 percent on a one-year ARM, according to Freddie Mac. In 2003, rates on a 30-year fixed were at 6.54 percent, while ARMs carried a 3.76 percent rate.
This year, more than $300 billion worth of hybrid ARMs will readjust for the first time. That number will jump to approximately $1 trillion in 2007, according to the MBA. Monthly payments will leap too, many beyond what homeowners can afford....
''ARMs are a ticking time bomb,'' said Brad Geisen, president and chief executive of property tracker Foreclosure.com. ''Through 2006 and 2007, I'm pretty sure we'll see a high volume of foreclosures.''
''We are on the front of this ARM problem. It will roll out over the next several years,'' Boas said. ''Owning a home is the American dream, but losing one is the ultimate nightmare.''