As a follow up there was a feature on the news this morning...foreclosures are up 43% nationally from as year ago with Florida and Colorado leading the way with the greatest number of claims.

It appears that those who experimented with the new creative financing such as interest only adjustable rate mortgages are having a hard time if they are not in a position to refi. It looks as though many of these people were trying to acquire the American dream with insufficient income to accomodate the adjustable rate mortgages they signed when the first change period arrived.

The jump in the interest rates on the adjustable rate mortgages that I have seen is incredible. I saw one that jumped from 4% to 11% after 3 years.
The refi closings in this area are still going strong. Hopefully between the refies resulting from maturing adjustable rate mortgages  and the increased sales resulting from reduced pricing the volume will remain high.

The amazing thing is that many of the borrowers are replacing their adjustable rate mortgages with another adjustable rate mortgage with an equally incredible interest rate hike 2 or 3 years from now.

Interesting that both housing sales and foreclosures are reported to be on the rise.