The housing front, upon further review

It's come to my attention to pay a bit closer to the ARMs rates to see if the resets in 2009~2011 will really have a big impact on the housing market. At first, it was my initial thought that the resetting rates will have a similar impact as that of the subprime mortgage meltdown. However, upon further review, it seems that a good number of those on ARMs may see a reset that proves beneficial to them.

The rates are lower now and will likely stay low for a bit [though i guess i'm crossing fingers here], so for a lot of people, the reset rate will be lower than what they were paying, and therefore, they won't be hit with the shock that many subprime borrowers have run into. This doesn't mean ARMs are not an issue. The rates in 03/04 have seen some huge cuts and the 5/1 ARMs mortgages from 03/04 may see a jump in their rates similar to those who took the subprime route.

So, what does that add up to in terms of those who are waiting to buy a home? Well, I cannot say for sure, since there are also a variety of other factors, the main one being unemployment. However, my previous outlook on ARMs resets seem to be taking a turn away from doom and gloom to just gloom.

Prices are still going down, and without new jobs or money to stir the economy, the bottom line still stands. I guess we'll see how far the prices will indeed drop, but my plans of home ownership remain stable as I look to purchase towards summer of 09 into spring of 2011.