Mortgage Industry:  Who didn't see this coming?

Now I know that in every scenario there are exceptions to the rule but I don't think there will be many ARM's placed this year!  They have such a bad stigma attached to them right now!  I saw this article and just thought to myself Who didn't see this coming!

Consumers shun adjustable rate mortgages

Surging rates and consumer caution decrease ARMs activity.

NEW YORK (Reuters) -- Consumers are shunning adjustable-rate mortgages in droves as rates surged to levels not seen in over six years, data from an industry trade group showed Wednesday.

The Mortgage Bankers Association said borrowing costs on 30-year fixed-rate mortgages dropped to the lowest level in weeks, but rates on one-year adjustable-rate mortgages (ARMs) surged to 6.51 percent from 5.84 percent in the week ended Aug. 24, its largest weekly jump on record and highest level since January 2001. FULL STORY

by cnnmoney.com August 29 2007: 1:16 PM EDT

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