Come next month, some of the cheap loans that got U.S. buyers into homes they might not have otherwise been able to afford are expected to get far less cheap. Adjustable-rate mortgages, which offer lower rates for an initial period, already are resetting. But the Mortgage Bankers Association estimates October through December will bring the peak of these new, higher rates - and pricier mortgage payments. Such adjustments could spell continued trouble for a sluggish national housing market.

I think this will be a major concern, even with the Fed lowering rates and offsetting some of the pain. This will play a major problem in out markets for a while. I believe this could get us continuing the down trend of the Real Estate market cycle below...

Real Estate cycle

The Pacific Northwest, including my areas of Kent, Auburn, Covington, Washington should fair better than many areas, but it could be a bit painful as prices adjust. How do you think your area will do in the coming months or years?

 
This post has been included in Washington Information King County, WA Information

5 Comments on Arms are getting ready to adjust. Are you and homeowners alike ready for the adjustment?

I am ready for all my clients to buy :)  Thanks for the post the graphic is powerful!

09/24/2007 12:01 AM by Ahwatukee Real Estate Expert, Dawn Workman, MBA (DPR Realty, LLC)

It's too bad so many hard-working Americans will be displaced from their homes over the next year or so, due to readjustments in their neg-am ARM mortgages.  The upside is that REO and Short Sale homes will drive down the local housing prices and, eventually, homes will become more affordable.  I just hope more landlords and apartment managers will show compassion towards victimized homeowners, now renters with foreclosures and Short Sale deficiencies on their credit reports. 

09/24/2007 12:14 AM by Barry Shapiro (Keller Williams Realty)

The graphic is powerful! It's a buyer market for qualified buyers.

09/24/2007 03:53 AM by Mohamed Mekhimar - Accredited Buyers Rep , E-Pro - Richmond Virginia Real Estate (RE/MAX Commonwealth)

Hey Jason... do you mind if I send your graphic to a few of my clients- I'll be sure to post the link to your blog with it.

09/24/2007 11:43 AM by Chuck Willman, Arizona Realtor®, ABR, TRC (Gentry Realty)

Chuck, You are always welcome to use my info. Please feel free. Thanks for having it linked.

09/24/2007 12:31 PM by Jason Schweiger (Real Estate 2000)

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Real Estate Agent: Jason Schweiger (Real Estate 2000)
Jason Schweiger
Kent, WA
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Real Estate 2000

Office Phone: (253) 315-5580
Cell Phone: (253) 315-5580
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South King County Real Estate agent working hard for my clients in the Puget Sound region including Kent, Auburn, Maple Valley, Covington, and Renton.

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