COST AN "ARM AND A LEG!"

"NEW YORK (CNNMoney) -- "Adjustable rate mortgages are back!

After accounting for nearly 70% of all mortgages issued during the boom, ARMs vanished during the bust, totaling just 3% of the market in 2009. Now they make up 5% of all mortgages issued, and Freddie Mac predicts 10% by December.

Other stories at link
Foreclosure Fiasco
ARMs helped sink the economy - now they're back!
Foreclosures are falling - but it's a fake out
30% of mortgages are underwater
Whose house is being saved by Obama?
Las Vegas: Still the foreclosure king

Behind the comeback is a simple fact: ARMs are a great bargain right now. The most common ARM loan currently has a rate of 3.5% compared to 5% for a 30-year fixed-rate mortgage.

"For anyone with a high likelihood of moving soon, the 5/1 is a great product," said Michael Fratantoni, vice president of research and economics for the Mortgage Bankers Association. "It's a well understood product too; there's not a lot of danger with it."

I'm so glad that the GSE'S see adj rate mortgages rising to 10% of their new products in the near future....do these idiots ever learn?

Do you wonder why the FED is targeting the stock market for appreciation? because they are incapable of doing much more, 30% of mortgages held are underwater? that is staggering figure...FED policy or Obama promises helping them out?

Let's see, the most basic rule that markets follow is SUPPLY AND DEMAND. We have record need to issue debt, we have dwindling interest from abroad in our debt. FED BALANCE SHEETS ARE BLOATED and are buyers of first and last resort.

You know what really ticks me off? Is the constant bullish banter, even from my inner circle group of market pros. Now, maybe it's just me, but the current situation and backdrop disgusts me, and I don't see the same thing the stock market portrays....what I see is a system run amok, savers getting raped, and the average American is bent over holding their ankles....and I'll continue to speak out, and tell it like it is (or at least how I see it) til I cannot anymore.

Duratek