| Mike is correct... This is an adjustment in the cycle. Housing is going into it's down cycle as you will see by the number of equity-lines. Un-realistic pricing and over extension 2 years ago will catch-up and the foreclose issue will again show its face (look around your neighborhood... you'll tell). Investors are a little smarter now and the EL will be taken in cash and parked to avoid a cutting of the line, depending on the market. Interest rate increases of 1/2% is small money monthly compared to the adjustment a I/O or 5/1 ARM into something else. Qualifying to purchase is based on income... if you could afford the house with a $2000 month payment and the minor interest increase to $2150 kills the deal... you were in the wrong deal. |
