People on ARMs are a risk. That is going to be a huge shock but they are not numerous enough to be the systemic issue they were in the housing crisis.
With sub-3% 30-year fixed available, if people were buying arms, they get what they deserve. That being said, I dont think there were a lot of them. I firmly believe housing needs to drop. I just believe its a reversion to the mean and not a crash.
We need Cramer to announce he is short.
I mean, the thing with real estate is that it's local. While the trend was definitely up across the country, like always it was cities that had the biggest swing in prices. So prices will decrease with interest rates, but it won't be a bubble popping.
